SHARE OUR VISION
LEADERSHIP 3 3 MESSAGE FROM THE CEO CSR APPROACH 5 6 ABOUT DIRECTV 7 CSR STRATEGY 9 REPORTING PRACTICES 11 CORPORATE GOVERNANCE & ETHICS ISSUES 13 14 EDUCATION Strategy 14 U.S. STEM Programs 15 DIRECTV GOES TO SCHOOL 19 ESCUELA+ 20 22 ENVIRONMENTAL STEWARDSHIP Strategy 22 Energy and Greenhouse Gas (GHG) Emissions 26 Product Efficiency 30 Product Materials and Packaging 33 e-waste and Recycling 34 Operational Waste Management 36 Supplier Sustainability 38 39 CUSTOMER EXPERIENCE 41 DIVERSITY AND INCLUSION Overview 41 Workforce 42 Workplace 44 Marketplace 46 47 TALENT MANAGEMENT Overview 47 Recruitment 48 Development 49 Health and Wellness 52 53 LOCAL COMMUNITY IMPACT Overview 53 DIRECTV Latin America Volunteerism 54 U.S. Volunteerism 56 Skills-based and Pro Bono Volunteerism 59 Contributions 63 Disaster Relief 65 66 ECONOMIC IMPACT COUNTRY PROFILES 67 68 UNITED STATES 74 LATIN AMERICA Argentina 75 Sky Brasil 79 Caribbean 83 Chile 85 Colombia 89 Ecuador 93 Perú 97 Puerto Rico 101 Uruguay 105 Venezuela 109 GLOBAL REPORTING INITIATIVE (GRI) 113 FAQ 121
MESSAGE FROM THE CEO Each day, DIRECTV delivers on our commitment to provide a premium entertainment experience through cutting-edge technology, the best programming and responsive customer service for our 38 million subscribers in the U.S. and Latin America*. As a leading corporate citizen, our commitment extends beyond the entertainment and customer experience because we have a responsibility to the communities we serve, the environment in which we live and the people who put their talent to work for us every day. When these thrive, so does our business. In 2013 we published our first public Corporate Social Responsibility report that outlined our progress for 2011 and 2012 against our strategy to be a socially and environmentally responsible Mike White company. I m pleased to now share this report, Chairman, President and CEO which covers our corporate social responsibility DIRECTV efforts in 2013 and discusses our plans to build on our accomplishments. In 2013 we not only saw record profits and revenues for our company, but we also saw meaningful corporate social responsibility accomplishments, particularly in our target areas of corporate citizenship, environmental stewardship, and diversity and inclusion. We have a responsibility to help improve the communities we serve. Education is key to the future growth of our economy and the success of society at large. DIRECTV contributes knowledge and resources that can be leveraged to enhance education across the Americas, with an emphasis on Science, Technology, Engineering and Math (STEM) in the U.S. In this report, you ll read about the strides we re making to support education through the use of DIRECTV technology to support schools via our DIRECTV GOES TO SCHOOL and ESCUELA+ programs, our sponsorship of online math technology to enhance student learning, professional development for teachers, improved facilities and technology, and more. We ve also focused on volunteerism, and while supporting education initiatives and other communityfocused projects, our employees dedicated more than 32,000 hours on volunteer projects across the Americas in 2013. Another exciting accomplishment in 2013 was our recognition on Bloomberg s Civic 50 list as one of America s most community-minded companies. We have a responsibility to conduct business in a way that respects and supports our environment. In this report, you ll learn how we have reached or exceeded many of the environmental efficiency goals we set in 2011, often ahead of schedule. For example, we surpassed our five-year emissions reduction goal within the first year. Fueled by our successes against our 2011 goals, we ve set ambitious new operating, product and engagement sustainability goals. And we ve coordinated our efforts by realigning our organizational structure and strategy under an enterprise-wide initiative. The result will better equip us to collaborate, test, implement and track our progress against objectives. *Includes approximately 6 million subscribers of SKY Mexico, which is 41 percent owned by DIRECTV LEADERSHIP 3
MESSAGE FROM THE CEO continued We have a responsibility to create and maintain a world-class workplace that attracts diverse top talent and helps them thrive professionally and personally. Engaging a broad spectrum of experience and perspectives is a business imperative in a diverse marketplace. We strive to foster an environment where employees can bring their whole selves to work. So it s encouraging to see our employee engagement increase for the third consecutive year to reach 87 percent. Our diversity and inclusion policies also inform our relationships with our suppliers and millions of customers in the markets we serve. While the results of our efforts thus far have often surpassed our own expectations, there is always room for improvement. We are continually searching for ways to set the bar higher, provide an enhanced entertainment and customer experience, and deliver on our commitment to being a good corporate citizen. We look forward to continuing to update you on our progress. Mike White Chairman, President and CEO DIRECTV LEADERSHIP 4
CSR SHARE OUR VISION That hundreds of volunteers can transform an empty space into a state-of-the-art playground in just six hours. APPROACH
ABOUT DIRECTV DIRECTV is one of the world s leading providers of digital television entertainment services, delivering a premium video experience through state-of-the-art technology, unmatched programming and industry-leading customer service to 38 million customers in the U.S. and Latin America. 37.8 MILLION * CUMULATIVE SUBSCRIBERS Our Footprint (DIRECTV Operations) 28,000+ FULL-TIME EMPLOYEES GLOBALLY 11 U.S. AND LATIN AMERICAN MARKETS 195+ U.S. HD PROGRAMMING CHANNELS HEADQUARTERS El Segundo, Calif. CORPORATE OFFICES United States Denver, Colo. El Segundo, Calif. New York, N.Y. Latin America Buenos Aires, Argentina São Paulo, Brazil Santiago, Chile Bogotá, Colombia Quito, Ecuador Lima, Perú San Juan, Puerto Rico Chaguanas, Trinidad and Tobago Montevideo, Uruguay Caracas, Venezuela BROADCAST CENTERS United States Castle Rock, Colo. Long Beach, Calif. Los Angeles, Calif. Latin America Buenos Aires, Argentina Caracas, Venezuela São Paulo, Brazil CUSTOMER CARE CENTERS United States Boise, Idaho Denver, Colo. Huntington, W. Va. Huntsville, Ala. Missoula, Mont. Tulsa, Okla. * Includes SKY Mexico, which had approximately 6 million subscribers as of 12/31/13 in Mexico, Central America and the Dominican Republic. DIRECTV owns 41 percent of SKY Mexico. All data as of Dec. 31, 2013. Latin America Buenos Aires, Argentina Bogotá, Colombia Cali, Colombia Caracas, Venezuela Santiago, Chile São Paulo, Brazil CSR APPROACH 6
CSR STRATEGY Our vision is to provide customers with the best video entertainment experience inside and outside the home by offering them unique, differentiated and compelling programming through leadership in content, technology and customer service. Corporate citizenship and environmental sustainability are an inherent part of this vision. Responsible, ethical business practices, as well as charitable corporate investments of time and money, contribute to thriving societies, which are necessary to ensure that our business thrives. To this end, we approach corporate social responsibility through our efforts to be a good corporate citizen, a responsible environmental steward and a company with a diverse and inclusive culture that supports the success of our talented workforce. Corporate citizenship means being a good corporate citizen and championing socially responsible business practices to ensure that we are the kind of organization our communities welcome as a neighbor. In particular, we look for ways that our core capabilities in technological innovation can benefit society. Increasingly, these efforts focus on enhancing education across the Americas, with an emphasis on Science, Technology, Engineering and Math (STEM) education in the U.S. DIRECTV volunteers worked with nonprofit KaBOOM! to build a new playground for the Down Syndrome Organization of Southern Nevada. Environmental stewardship is an important aspect of our business. The actions we take to conserve energy and reduce waste not only reduce our footprint, but also enable us to operate a more efficient, cost-effective business both of which positively impact our stakeholders. Our Televisionary * program is charged with driving organizational performance against a robust set of sustainability goals that encompass operations, products and stakeholder engagement. Diversity and inclusion is a cornerstone of our talent management strategy. We seek to foster an inclusive workplace by attracting and retaining top talent who have a broad spectrum of experiences and perspectives and who feel comfortable bringing their whole selves and their ideas to work. *Televisionary is a trademark of Ericsson Television, Inc., and is used with permission. CSR APPROACH 7
CSR STRATEGY continued CORPORATE CITIZENSHIP AND SUSTAINABILITY OVERSIGHT DIRECTV s Corporate Social Responsibility (CSR) Steering Committee is a decision-making body with oversight of our corporate citizenship and sustainability activities in the U.S. and Latin America. Committee membership consists of members of our senior leadership team and key internal stakeholders. The Steering Committee meets twice each calendar year and provides an annual report to the Nominating and Corporate Governance Committee of the Board of Directors on Corporate Social Responsibility at DIRECTV. For corporate citizenship, the Committee is charged with reviewing goals against our business strategy; revalidating focus areas annually and modifying as needed; guiding the development of new signature programs and improving existing ones; and supporting employee engagement and increased CSR transparency. In the area of sustainability, the Committee s responsibilities include reviewing goals against our overall business strategy; integrating sustainability into each business unit; overseeing the development of environmental policies and positions; and evaluating strategic opportunities to reduce our environmental impact. STAKEHOLDER ENGAGEMENT DIRECTV has conducted a comprehensive stakeholder analysis through the lens of corporate social responsibility. The analysis encompassed all stakeholders who are, or can potentially be, involved in furthering our sustainability and CSR initiatives. This analysis also included identifying current means of engagement with each group. We are building upon this work by identifying additional means of engagement for future implementation. Major stakeholder groups include stockholders, employees, customers, dealers, nonprofits and community organizations. We engage these groups through a wide variety of communications. Our participation in CDP reporting, for example, directly targets stockholder engagement. We interact with customers through satisfaction surveys and our customer care centers, as well as through our monthly billing function. Community engagement encompasses surveys, audits of major community programming and direct discussions with organizations with whom we work. CSR APPROACH 8
REPORTING PRACTICES DIRECTV is committed to the regular and transparent reporting of our corporate social responsibility initiatives. This marks our second Corporate Social Responsibility report and follows our inaugural report for 2011-2012, which was published in November 2013. Unless otherwise noted, the data in this report covers the calendar year that ended Dec. 31, 2013, and is limited to wholly or majority-owned DIRECTV operations. All financial data and references are in U.S. dollars unless otherwise noted. Editorial content generally covers subject matter for 2013. We have prepared this report in accordance with the Global Reporting Initiative (GRI) 4.0 core guidelines. Learn more about GRI at www.globalreporting.org. In addition to the GRI framework, report content was determined further through a materiality assessment. An external party conducted this assessment by working with an internal, cross-functional team to compile, review and validate a wide range of issues. These issues were evaluated on their impact to DIRECTV s business and its stakeholders. The following table summarizes the material issues that are included in this report. ISSUE REPORT LOCATION (BY SECTION) Community Development Compliance Customer Experience Diversity & Equal Opportunity Economic Performance Education Electronic Waste Employee Engagement Energy & Greenhouse Gas Emissions Ethical Business Practices Government Relations & Public Policy Advocacy Health & Safety Labor/Management Relations Product Impacts Waste Management Workforce Development Community Impact Corporate Governance & Ethics Customer Experience Diversity & Inclusion Economic Impact Education Environmental Stewardship Talent Management Environmental Stewardship Corporate Governance & Ethics Corporate Governance & Ethics Talent Management Talent Management/GRI Environmental Stewardship Environmental Stewardship Talent Management CSR APPROACH 9
REPORTING PRACTICES continued METHODOLOGY AND ASSURANCE DIRECTV measures its greenhouse gas (GHG) emissions utilizing the guidelines of the Greenhouse Gas Protocol (GHG Protocol), a partnership effort of the World Resources Institute and the World Business Council for Sustainable Development. The GHG Protocol is the most widely recognized international accounting tool to calculate, report and manage GHG emissions. Our inventory of GHG emissions comprises five types of gases. By far the largest component of our emissions is carbon dioxide (CO2), which in 2013 constituted 98 percent of our total GHG emissions. The sources of our CO2 emissions are primarily fossil fuel combustion in boilers and generators, from purchased electricity and from on- and off-road mobile sources. To review the accuracy of our carbon footprint calculations, we retained Deloitte & Touche to perform an independent review of our statement of GHG Emissions. According to their Independent Accountants Review Report: Based on our review, nothing came to our attention that caused us to believe that the Statement of GHG Emissions of the Companies for the years ended December 31, 2013, December 31, 2012, and December 31, 2011 is not presented, in all material respects, in conformity with The Greenhouse Gas Protocol Corporate Accounting and Reporting Standard and the Corporate Value Chain (Scope 3) Accounting and Reporting Standard published by the World Business Council for Sustainable Development and the World Resources Institute. The report can be read in its entirety at http://www.directv.com/cms2/support/directv_statement_of_ Greenhouse_Gas_Emissions_with_Deloitte_and_Touche_R.pdf. CDP REPORTING Transparency and public engagement play a primary role in our CSR strategy. In 2012, DIRECTV became the first U.S. satellite or cable television company to participate in the CDP, which evaluates and grades performance for actions that contribute to climate change mitigation, adaptation and transparency. In 2013, our second year of reporting to the CDP, DIRECTV received a disclosure score of 91 out of 100 and a B performance score on our U.S. emissions performance, placing us significantly ahead of the average CDP score for our industry group. DIRECTV takes pride in its reporting transparency, and in 2013 we received special recognition from CDP as a leader in our industry classification for the breadth of our Scope 3 reporting. You may see our CDP responses here. Previously known as the Carbon Disclosure Project, CDP is an international, not-for-profit organization providing a global system for companies and cities to measure, disclose, manage and share vital environmental information. Investors assessing risk through CDP hold $92 trillion in assets. CSR APPROACH 10
CORPORATE GOVERNANCE & ETHICS As a publicly traded company (NASDAQ: DTV), DIRECTV is committed to the highest levels of transparent and ethical business conduct. The Board of Directors governs the company and is comprised of 12 directors, 11 of whom are considered independent according to company and NASDAQ listing standards. The one executive director serves as Chairman of the Board, as well as the President and Chief Executive Officer of the company. Working closely with the Chairman is the lead director, who chairs the executive sessions of the independent directors. The Board of Directors has three committees. The following table summarizes the membership of these committees and their areas of responsibility. COMMITTEE MEMBERSHIP RESPONSIBILITIES Audit 5 non-executive directors Audit, accounting, risk management, financial reporting, ethics compliance Nominating & Corporate Governance 11 non-executive directors Selection and nomination of Board members, corporate governance guidelines, code of ethics, corporate social responsibility, corporate citizenship, sustainable development including environmental compliance Compensation 6 non-executive directors Oversight of compensation plans We make the following documents available to the public through our Investor Relations website at http://investor.directv.com/corporate-governance/documents-and-charters/default.aspx: Third Amended and Restated Certificate of Incorporation Amended and Restated By-Laws Code of Ethics and Business Conduct Procedure for Handling Ethics Complaints Corporate Governance Guidelines Inspector of Elections Report Related Party Transactions Policy Securities Transaction Insider Trading Policy Committee Charters CSR APPROACH 11
CORPORATE GOVERNANCE & ETHICS continued ETHICS All DIRECTV employees, officers and directors are expected to adhere to our Code of Ethics and Business Conduct, which sets forth our standards for business practices that reflect honesty, integrity and transparency. Specific areas covered by the Code of Conduct include: Corporate assets and information Conflicts of interest Equal employment opportunity and unlawful harassment Safety of the workplace and environmental protection Relationships with competitors and other trade practices Export/import laws and regulations Code of ethics for the Chief Executive Officer and senior financial officers We work to ensure that there is no disconnect between our policies and how we conduct our business, and we reinforce this mindset through periodic reporting to the Board, annual ethics training for employees, monitoring trends, taking appropriate discipline, conducting employee surveys and issuing periodic and topical communications to employees. CSR APPROACH 12
SHARE OUR VISION That innovative technology can transform math education. ISSUES
ISSUES EDUCATION STRATEGY FUELING THE FUTURE ONE YOUNG MIND AT A TIME The kind of world we enjoy tomorrow will be determined in large part by the teaching and learning that occurs in school classrooms today. At DIRECTV, innovative technology is fundamental to everything we do as a company. Our continued success will be fueled to a significant degree by advances in science and engineering that make products and services smarter, faster, more capable and useful, and by the future talent that will help us continue to innovate and stay on the cutting edge. This makes us keenly aware of how important it is for tomorrow s workforce and today s students to develop a sound academic foundation in Science, Technology, Engineering and Math (STEM). For millions of young people across the U.S. and Latin America, education will be the essential enabler of opportunity. Today s youth will pursue careers in a world that is increasingly digital and defined by technological innovation. Young people without strong STEM competencies will find their career path to be much more limited. Building STEM skills requires a rigorous curriculum, well-trained teachers, adequate facilities and robust technology that facilitates learning. At DIRECTV, we are working to support each of these requirements and partnering with nonprofit organizations that are at the forefront of strengthening STEM education in the U.S. Survey data demonstrates that not enough students today possess the competencies necessary for tomorrow s economy. According to the U.S. Department of Education, only 16 percent of U.S. high school seniors are proficient in mathematics and interested in a STEM career.* That s why we are allocating a majority of our community investments to strengthen K-12 education, with a particular emphasis on STEM instruction. We recognize that sustainable progress can only be achieved one school, one classroom, one teacher and one student at a time. In the U.S., our DIRECTV GOES TO SCHOOL education program provides the DIRECTV SCHOOL CHOICE educational programming package free of charge to any accredited K-12 school in the U.S. In Latin America, we offer what we believe to be the premier television education project in the region ESCUELA+. This rapidly expanding, high-impact program now reaches thousands of schools and hundreds of thousands of students throughout the region. Across all markets we serve, our investments in educational programming, teacher training, internships, mentoring, technology and facilities are having a positive impact on student performance and we are just getting started. Moving forward we will continue to invest in ways that expand young minds and build brighter futures for us all. *Source: U.S. Dept. of Education, http://www.ed.gov/stem. ISSUES EDUCATION 14
U.S. STEM PROGRAMS RISING TO THE CHALLENGE TO IMPROVE MATH PERFORMANCE In 2013, DIRECTV announced a new initiative to support math achievement, the DIRECTV Math Challenge. Piloted with the Partnership for Los Angeles Schools, the Math Challenge included a $200,000 charitable investment to fund its implementation. Because research reveals that students math skills are fundamental to other learning and underpin all STEM competencies, our Math Challenge pursues the goal of improved math achievement in two ways. Half of the 2013 grant underwrote the Partnership s use of ST (Spatial-Temporal) Math, an online math instruction platform that combines face-to-face and technology-based instruction. The support of ST Math included professional development for teachers at all 11 Partnership middle and elementary schools so that instructors can make the most effective use of ST Math. Our support also included laptop computers for student use in the classroom. ST Math is a component of the Partnership's technology-connected learning strategy that uses online learning programs to support teachers who need to reach students of varying performance levels within the same classroom. Performance data confirms the value of this approach. After one year of using ST Math in elementary schools, the Partnership achieved a meaningful 6 percent increase in math scores on 2011-2012 state tests compared to a flat average overall by the Los Angeles Unified School District. DIRECTV Chairman, President and CEO Mike White visits an elementary school classroom that is using ST Math. The second component of our DIRECTV Math Challenge grant funded a multi-tiered incentive program to recognize students, teachers, principals and parents for their role in driving student math achievement. Prizes, such as free DIRECTV service for a year, student celebrations and tablets, were awarded based on student progress using ST Math, aggregate classroom and school math results, and use of the online learning tool outside of the school day. In May, DIRECTV brought exclusive end-of-year events to the campuses of the grand prize-winning elementary and middle schools to celebrate math achievement. Nearly 1,300 students at Gompers Middle School and Ritter Elementary in Watts, Calif., had the opportunity to practice their math skills through a variety of hands-on experiences beyond the classroom. These activities included an outdoor activity course, a cooking demonstration sponsored by the Food Network, and a weather meteorology lesson reporting simulation sponsored by The Weather Channel. We are excited to witness improvement in students STEM proficiency as we leverage DIRECTV s unique resources to support student achievement. Based on our ongoing assessment of the Math Challenge results, we plan to expand to an increasing number of schools in the future. The Math Challenge is the latest initiative in our multi-year effort to support the Partnership for L.A. Schools and its work. Since 2007, DIRECTV s involvement has funded a variety of programs, including underwriting the cost of Parent Centers at each Partnership school. In aggregate, our support in both cash and in-kind services now totals more than a half-million dollars. ISSUES EDUCATION 15
U.S. STEM PROGRAMS continued SHARING AND GIVING TO HUNDREDS OF CLASSROOMS IN NEED There are unmet needs at nearly every school in the U.S., and our investment in tools and resources to enhance teaching and learning extends beyond our corporate home in Southern California, to encompass all 50 states. We are excited to leverage the power of social media to engage our employees, customers and online community in this effort. 2013 marked the third year of our partnership with DonorsChoose.org, an online charity that makes it possible for generous citizen philanthropists to help students in need. Through DonorsChoose.org, public school teachers from across the country post requests for classroom resources, and individuals can give directly to the ones that inspire them. With DIRECTV s October 2013 You Share, We Give campaign, each time one of our Facebook followers shared one of the campaign images, DIRECTV donated $1 to STEM-related projects on DonorsChoose.org, up to $100,000. Teachers were invited to share links to their projects on DonorsChoose.org using the hashtag #DIRECTVgives for an increased chance of being funded as part of this campaign. The positive impact of You Share, We Give in 2013 reached schools and K-12 classrooms in all 50 states. The initiative funded 289 projects at 225 schools, benefiting nearly 23,000 students. The funds were allocated where most needed 82 percent of the funded projects went to schools that serve communities with high levels of poverty. In addition to our corporate contributions, the campaign generated 27.6 million online impressions and activated more than 2,000 individual donors, raising significant awareness of DonorsChoose.org. TEACHERS SAY IT BEST Without your singular donation, these resources would not be available to my students. My eighth-grade scientists have a range of reading levels, but these books will help support them in their science research and experimentation. These books will be the first off the shelves on any day! Ms. Harris, Washington, D.C. STEM Project: Bubbling Scientists Need Sources! What a delightful surprise to get a donation from your company! The students are excited about getting STEMified. Who knows, maybe one of them will be your next great DIRECTV inventor! Mrs. Wight, Missouri STEM Project: Gears and Engineering for Kids I made it my personal mission this year to obtain a class set of ipads. When I told my students this project had been funded, they were so excited they were jumping up and down! We use the ipads daily in our classroom, and my students have benefited educationally from them on so many levels. Ms. Cuellar-VanAken, Texas STEM Project: Technology Today Impacting Tomorrow: Take Two ISSUES EDUCATION 16
U.S. STEM PROGRAMS continued DEVELOPING EXCELLENT MATH TEACHERS Motivated by the belief that great teaching is critical to student success especially in STEM subjects DIRECTV began investing in professional development for STEM teachers in the El Segundo Unified School District, adjacent to our corporate headquarters. Our grant to the El Segundo Education Foundation for the 2012-2013 school year supports a development program for high school math teachers through Loyola Marymount University s Center for Math and Science Teaching (CMAST). Through the program, teacher cohorts learn how to deeply engage their students in learning and ensure that strong foundations are built in mathematics and engineering practices through the Common Core State Standards (CCSS) and Next Generation of Science Standards (NGSS). As Teacher Leaders, participants also provide demonstration classrooms for their colleagues, administrators and the community. Overall, students experienced greater academic success in classrooms where teachers were implementing the new instructional practices. For example, Algebra 2 grades increased by 14 percent and average passing scores on the Advanced Placement Physics exam also increased by 10 percent. On an independent college Calculus assessment, A grades increased 25 percent. For the 2013-2014 school year, DIRECTV s professional development grant to El Segundo schools supported math instruction at the elementary school level via Cognitively Guided Instruction (CGI), a professional development program offered through the Graduate School of Education & Information Studies at the University of California, Los Angeles. CGI is an approach to teaching mathematics that emphasizes the practice of listening to children's mathematical thinking and using it as a basis for instruction. Through both of these programs, DIRECTV seeks to foster student development as problem-solvers who are empowered to bring skill and confidence to mathematical situations. We are proud to invest in teacher success because we know that when one teacher s skills are strengthened, hundreds, or even thousands, of their students will benefit during the course of their careers. ISSUES EDUCATION 17
U.S. STEM PROGRAMS continued BUILDING TOMORROW S SOLUTIONS TODAY Combining STEM education and student creativity with commitment to innovate and act locally is the idea behind the Samsung Solve for Tomorrow education contest. DIRECTV is proud to be a partner in this important initiative, which gives schools across the U.S. the opportunity to raise interest in STEM subjects among students by awarding winning schools a share of more than $2 million in technology products. During the 2012-2013 and 2013-2014 school years, teachers of sixth- through twelfth-grade classes were invited to create videos with their students to answer the challenge, How can STEM help improve the environment in your community? Each year, DIRECTV provided $35,000 in cash prizes for winning schools, along with complimentary DIRECTV installation for the DIRECTV GOES TO SCHOOL program. The students who participate in Solve for Tomorrow develop stronger skills in science, engineering and other disciplines, while devising solutions to real-world problems that affect their communities. They learn that technical and scientific knowledge, when combined with volunteerism and community activism, can be a powerful force for good. To learn more, visit: www.samsung.com/us/solve. ISSUES EDUCATION 18
DIRECTV GOES TO SCHOOL BIG IDEAS, POWERFUL CONNECTIONS: DIRECTV GOES TO SCHOOL Through DIRECTV GOES TO SCHOOL, we offer the finest educational television experience in the U.S. at no cost to any qualifying, state-accredited school, grades K-12. Our SCHOOL CHOICE programming package gives schools access to current events coverage and breaking news, as well as educational programming to enhance their students classroom experience. SCHOOL CHOICE is specifically designed for classroom viewing, offering a high concentration of educational programming, news, weather and other current events channels. The package comprises nearly 100 channels and includes channels such as A&E, Animal Planet, Biography, CNN, CSPAN, Discovery Channel, History Channel, NASA TV, The Science Channel and Univision. After schools complete a simple online application process, DIRECTV sends qualifying institutions a free DIRECTV System for up to four rooms, including four HD receivers and remotes, one of which may be a DIRECTV HD DVR. Educators can use their free DIRECTV System to record shows and programming that enhance their classroom instruction. In addition, channels such as NASA TV and History Channel provide additional teacher resources such as lesson plans to help connect programming content to meaningful classroom instruction. In 2013, DIRECTV contributed more than $5.6 million in in-kind services and equipment through the program. DIRECTV GOES TO SCHOOL SPECIAL ASSEMBLY WITH OPRAH WINFREY The campus of Jordan High School in the Watts neighborhood of Los Angeles came alive on Feb. 20 when Oprah Winfrey surprised students and DIRECTV employees during an on-campus assembly. It was part of a DIRECTV Day of Service, where 225 employees painted inspirational murals and mentored students at Jordan. As the group was wrapping up their day, Oprah came by to offer some inspirational words of advice. DIRECTV and Oprah chose Jordan High School to shine a light on the significant turnaround work taking place on campus. In 2012, its Academic Performance Index (API) score increased 93 points, which was not only the highest improvement for a school in the Los Angeles Unified School District, but also in the state of California. We believe that bringing inspirational and history-making figures into schools for live events is an effective way to make the classroom learning experience come alive for students. Oprah s visit built off of similar successful events hosted by DIRECTV at high schools in 2011. Featured speakers included Archbishop Desmond Tutu in Los Angeles and a panel of musical talent and public officials in Washington, D.C. We continue to look for unique opportunities like these that we can provide as part of DIRECTV s commitment to K-12 education. ISSUES EDUCATION 19
ESCUELA+ MAKING TV AN ALLY IN THE CLASSROOM Since 2007, when its first pilot programs were launched, ESCUELA+ has served as a catalyst for positive change in a growing number of schools throughout Latin America. Through ESCUELA+, DIRECTV Latin America works in partnership with private companies, government departments of education and other stakeholders to positively transform the classroom experience of Latin American teachers and students. In the span of just six years, ESCUELA+ has earned recognition as the premier and most complete TV education platform in Latin America. Four primary pillars support the program s successful formula: State-of-the-art technology: DIRECTV s satellite technology allows educational programming to reach any school in Latin America, from the heart of the Amazon to the southernmost reaches of Argentina near Antarctica. Because our service has no geographical limits, it can serve educational 300,000+ STUDENTS PARTICIPATING 10,000+ TEACHERS TRAINED 50% GROWTH IN PARTICIPATING SCHOOLS IN 2013 communities that do not have access to other technologies a school simply needs a TV and electrical power. DIRECTV Plus SD DVR recording lets teachers control content and record up to 100 hours of educational programming to use at their convenience. More than 200 operators have been trained at the call center in Cali, Colombia in order to support teachers using ESCUELA+. Exceptional partner education content and support materials: Programming from ESCUELA+ partners is indexed in a core curriculum specifically designed for Latin America and the Caribbean. Partners providing content include Discovery, Nat Geo, Microsoft, Fundación Torneos, as well as local Ministries of Education. Innovative methodology: Teachers in participating schools are trained to use the program based on the Discovery en la Escuela methodology and also learn to effectively use DIRECTV s ESCUELA+ audio/visual technology. Ongoing communication and engagement: Classroom technology is only effective where there is the training and support that maximizes its effectiveness. Our teacher training and engagement strategy helps schools maximize the benefits of ESCUELA+ and its programming. An ESCUELA+ teacher with her students in Buenos Aires, Argentina. By every measure, 2013 was a record-breaking year for ESCUELA+. The number of participating schools grew by more than 50 percent from 2012 to nearly 1,600 schools. The initiative was introduced in Perú, and teacher training also began for 2014 deployment in Uruguay. More than 10,000 teachers were trained in ESCUELA+ methodology, and the total number of students impacted across the region rose rapidly to 300,000. ISSUES EDUCATION 20
ESCUELA+ continued DRIVEN TO INNOVATE ESCUELA+ was also driven to innovate in 2013, expanding offerings and finding new ways to serve students, teachers and communities. Training programs, a website with support materials, email support and in-person visits have been designed to help teachers deploy the program effectively and make TV their ally in the classroom. We also know some teachers have questions about technology and content and may not have the resources available in their school systems to obtain real-time answers. To address this need, we launched a service that enables teachers with a question or a problem to call a toll-free number a service not typically available in the region. Specially trained customer service representatives field the calls, while additional DIRECTV Latin America personnel work in a volunteer capacity to support teachers in the field. In 2013 we were also excited to launch the pilot ESCUELA+ Solar, an initiative that combines our standard DIRECTV satellite technology with a solar array to power the system. This end-to-end solution holds particular promise for remote school locations where electrical power is uneven or unavailable. Additionally in 2013, we launched DIRECTV CINEMA+ to provide film and production training and education to children in lower-income schools. In addition, through an agreement with Sundance Channel and the University of Southern California (USC) Film School, CINEMA+ sponsors a regional short film contest. Country winners earn local scholarships, and one annual regional winner earns a scholarship for a summer at USC Film School. Television can be an effective vehicle to promote cross-cultural understanding. In 2013 ESCUELA+ Embajadas (Embassies) expanded its agreement with the U.S. Department of State and launched service at 17 new Bi-National Centers (BNCs) sponsored by the local U.S. Embassy in Colombia. This collaborative program promotes the study of the English language and American culture. In 2014, Chile, Perú and Ecuador will join the already operational BNCs in Colombia and Argentina. It s wonderful to hear my students talk about the videos and see how they retain information. ESCUELA+ also helps them learn critical thinking and the ability to defend their opinions. Nancy Garcia, Principal, Argentina We don t have a library or a physics or chemistry lab. ESCUELA+ is very useful for showing students materials when, for example, we have to explain the human skeleton. Leonard Padilla, Teacher, Colombia We are very pleased to join the ESCUELA+ initiative. It demonstrates that large organizations can work together to improve education and offer children greater and better opportunities. Alejandra Scialabba, Executive Director, Foundación Torneos ISSUES EDUCATION 21
ISSUES ENVIRONMENTAL STEWARDSHIP STRATEGY In 2013, DIRECTV continued to demonstrate industry leadership in sustainable business practices by expanding our commitments to environmental stewardship, launching new initiatives, earning increased recognition and better aligning our people and processes to realize progress toward our goals. We call our enterprise-wide sustainability effort Televisionary *, and this organizational structure facilitates greater collaboration, effectiveness and accountability against our sustainability objectives. We view sustainability as a critical issue for our industry, and we aspire to lead through our commitment to it. Reducing our environmental impacts is important to each of our stakeholder groups customers, stockholders, employees, regulators, NGOs and the communities we serve. We developed our strategy to fully integrate sustainability across our entire operational footprint. This strategy improves the company s business performance and provides long-term business value through revenue growth, cost reductions and risk mitigation. We help mitigate climate change by reducing the energy consumption of our products and increasing the energy efficiency associated with our operations. And, as a global corporate citizen that reaches tens of millions of customer homes each day, we also look beyond our own operations and leverage the opportunity to be an advocate for environmental progress. We provide customers with actionable information that can help them save energy and conserve resources. *Televisionary is a trademark of Ericcson Television, Inc. and is used with permission. ISSUES ENVIRONMENTAL STEWARDSHIP 22
STRATEGY continued Achieving our sustainability mission begins with accurate measurement and transparent reporting of our performance. It also requires that we establish specific and achievable goals for continued improvement. We have implemented processes across our organization to expand the collection and reporting of key sustainability performance metrics, and we have aligned our sustainability initiatives with these primary operating, product and engagement goals for our U.S. operations. U.S. GOALS Operations Goals Reduce combined Scope 1 and Scope 2 emissions by 40 percent by 2020 against our 2011 baseline. Reduce the amount of waste entering landfills by 95 percent by 2020 against our 2012 baseline. Recycle or refurbish one receiver for every new receiver purchased by DIRECTV. Engagement Goals Establish best-in-class sustainability governance policies across the organization and supply chain. Increase stakeholder sustainability awareness. Improve reporting and sustainability performance. Product Goals Decrease customer emissions by 1 million metric tons of CO2 per year by 2020 against our 2012 baseline. Improve sustainability performance of DIRECTV products and packaging. Reduce the amount of disposable materials used by DIRECTV by 25 percent by 2020. We also have worked to integrate sustainability more deeply into our Latin American operations. Our global Televisionary team has worked closely with colleagues throughout Latin America to better understand the current situation, identify opportunities to further integrate sustainability and develop goals tailored to Latin America s specific needs. Our DIRECTV Latin American goals include: LATIN AMERICAN GOALS Operations Goals Recycle 100 percent of the scrap electronic waste collected by DIRECTV with an R2-certified recycler by 2015. Establish measurement procedures to determine DIRECTV s waste generation (in tons) and waste-to-landfill percentage by 2017. Reduce greenhouse gas emissions per square meter by at least 10 percent from existing DIRECTV/SKY operated facilities from a 2013 baseline by 2017. Engagement Goals Assure 100 percent of suppliers of electronic components comply with DIRECTV s Supplier Code of Conduct. Engage with our 10 largest suppliers (as a percentage of spend) on sustainability opportunities, particularly related to energy, carbon footprint and electronic waste. Product Goals Commit to ENERGY STAR qualification for all new receivers by the end of 2014. Reach at least 50 percent penetration of ENERGY STAR-qualified receivers region-wide by 2017. ISSUES ENVIRONMENTAL STEWARDSHIP 23
STRATEGY continued A BETTER-ALIGNED ORGANIZATION In 2013 we realigned our Televisionary program to drive organizational performance against our sustainability objectives. Responsibility starts at the highest level of our organization with the Nominating and Corporate Governance Committee of the DIRECTV Board of Directors. The next tier of oversight is our Corporate Social Responsibility (CSR) Steering Committee, a decision-making body comprised of company leaders. Led jointly by DIRECTV s chief human resources officer and executive vice president, services and operations, the committee has oversight responsibility for the company s environmental performance, policies and product attributes as well as our Corporate Citizenship strategy and periodically reviews progress against our stated objectives. The sustainability team, under the leadership of the executive vice president, services and operations, and the vice president, supply chain, facilitates all sustainability programs, works with the CSR Steering Committee to develop and implement policy, oversees the Televisionary team that executes the sustainability strategy throughout the organization, reports progress and coordinates the efforts of three Televisionary working groups. Each of the three working groups leverages the multi-disciplinary expertise of team members from across the enterprise. The three groups include: Operations Working Group, which implements practices and programs that accelerate operational efficiencies and reduce environmental impacts by lowering greenhouse gas (GHG) emissions, reducing or diverting waste and improving e-waste recovery and recycling. Engagement Working Group, which drives internal and external stakeholder engagement, enhances program governance, provides transparent reporting and benchmarks, and fortifies DIRECTV s industry leadership in sustainability. Product Working Group, which creates more efficient products and packaging by using environmentally sustainable and socially responsible methods throughout the product life cycle initiatives that, in turn, also help our customers reduce their environmental impacts. ISSUES ENVIRONMENTAL STEWARDSHIP 24
STRATEGY continued These working groups have developed and advanced nearly 150 projects since the program began. Projects range from enterprise-wide strategic initiatives, such as reducing the energy consumption of receivers in customers homes, to employee-led local initiatives such as improved recycling infrastructure. TELEVISIONARY WORKING GROUPS Operations Working Group Engagement Working Group Product Working Group The Operations Working Group drives DIRECTV s sustainability vision through the relentless pursuit of practices that accelerate operational efficiencies and minimize our environmental impact. FOCAL AREAS: Greenhouse gas (GHG) emissions Waste production and diversion E-waste recovery and recycling The Engagement Working Group proactively establishes best-in-class, transparent and measurable programs that drive stakeholder engagement while enhancing DIRECTV s reputation as a leader in sustainability. FOCAL AREAS: Program governance Internal and external engagement Reporting & benchmarking The Product Working Group s mission is to focus on driving change to create more effective and efficient products and packaging by utilizing environmentally sustainable and socially responsible methods throughout the product life cycle. FOCAL AREAS: Product performance Product attributes Product material efficiency TURNING ASPIRATION INTO ACTION The realignment of DIRECTV s sustainability program makes it possible to more quickly and effectively implement initiatives to reduce our operating and product impacts, all while leading our industry on a more sustainable path going forward. With our new structure in place, good ideas are tested and implemented more quickly, knowledge is shared more broadly, and accountability and transparency are integrated into every step of our sustainability strategy. ISSUES ENVIRONMENTAL STEWARDSHIP 25
ENERGY AND GREENHOUSE GAS (GHG) EMISSIONS SIGNIFICANT PROGRESS TOWARD AMBITIOUS GOALS The troubling impacts of global climate change grow more apparent each year; they reach every household around the world as well as every business enterprise. It is clear that the effects of climate change have the potential to impact our customers and supply chain, as well as the industry regulations under which we operate. At DIRECTV, we view climate change as a serious societal challenge. That is why we consider meaningful action to lower energy consumption and reduce greenhouse gas emissions to be ingrained in our business strategy. We seek to continually reduce the carbon footprint of our operations including our facilities and vehicle fleet and that of our products, by applying innovative technology and the best management practices. DIRECTV began measuring its U.S. carbon footprint in 2011, when we established the goal to reduce our carbon emissions from U.S. operations by 5 percent on an absolute basis by 2015 a goal that we exceeded within our first year, primarily through significant reductions in fleet fuel consumption, thanks to smarter routing and dispatching of our technicians. Our progress continued through 2013 with a total reduction in our CO2e emissions of 15.7 percent, or 33,848 metric tons, from the 2011 baseline. This reduction is the equivalent of our technicians driving their vans nearly 23 million fewer miles each of those years. Given this past trajectory, we have established a new, more ambitious goal to reduce combined U.S. Scope 1 and Scope 2 emissions by 40 percent by 2020. Not only has this new goal set the bar higher for us, but we have also ensured that it aligns with the goals outlined by the latest scientific research in the field of climate change. Research indicates that global emissions will need to soon peak and then by 2050 decline to a level 40-70 percent below 2010 levels in order to avert the worst impacts of climate change. 1 DIRECTV GLOBAL SCOPE 1 AND SCOPE 2 EMISSIONS 2 (MTC02e) 2013 GLOBAL GHG EMISSIONS BY TYPE 225,048 206,414 195,637 2011 2012 2013 United States Latin America Scope 1: 101,236 Scope 2: 94,401 Scope 3: 3,950,892 1 Source: http://wwf.panda.org/what_we_do/how_we_work/businesses/climate/science_based_targets_setting22/. 2 Does not reflect carbon offsets of 183 MTCO 2e. ISSUES ENVIRONMENTAL STEWARDSHIP 26
ENERGY AND GHG EMISSIONS continued Also, in 2013, we expanded and strengthened our reporting by calculating the GHG emissions of our Latin American operations for 2011, 2012 and 2013. This data gave us a global carbon footprint for the first time, and the information now serves as a baseline for our future reduction efforts. Looking ahead, DIRECTV will continue its efforts to provide a transparent enterprise-wide view of the impact of our GHG reduction efforts. A COMPREHENSIVE APPROACH TO CONSERVATION Our initiatives to lower energy consumption and reduce GHG emissions encompass the full range of opportunities available in our business: the management of our vehicle fleet; the design of our products; the operation and design of our offices, data and broadcast centers; the packaging and shipping of our products and the acquisition of energy from renewable sources. LOGISTICS: FINDING BETTER WAYS TO GET THERE DIRECTV s approximately 6,000 U.S. vehicles comprise a major component of our carbon footprint and present a significant opportunity for increased efficiency. Recent experience has demonstrated that better routing of our fleet can pay big dividends. Through a state-of-the-art program called Dynamic Dispatch that incorporates near-real-time updates, DIRECTV Home Services technicians are routed to the customer closest to their current location, saving miles, fuel and time, while enhancing the customer experience. When combined with handheld turn-by-turn navigation and more efficient logistics to replenish supplies, this program saved more than 1 million gallons of fuel in 2013 and reduced carbon dioxide emissions by more than 20,000 metric tonnes since 2011. Additionally, we continue to test a range of alternative-fuel vehicles, as well as other fuel-efficient equipment and technology that can deliver better mileage with reduced emissions. The transportation and distribution of our receivers from our suppliers to our distribution centers represents another logistics consideration that impacts our Scope 3 emissions. We actively coordinate with our shipping partners to select shipping methods that require less fuel and generate fewer emissions. The overwhelming majority of our international deliveries are shipped via ocean freight, which is far more energy- and resource-efficient, and less expensive than shipping by air. 14.3% REDUCTION IN GALLONS OF FUEL PER WORK ORDER SINCE 2011 GALLONS OF FUEL PER WORK ORDER 3.59 3.37 3.07 2011 2012 2013 ISSUES ENVIRONMENTAL STEWARDSHIP 27
ENERGY AND GHG EMISSIONS continued AIR EMISSIONS PER TON-MILE Carbon Dioxide Equivalent (grams/ton-mile) Ship Rail Truck Air 0 200 400 600 800 1,000 1,200 The chart above published by the National Resources Defense Council in 2012 shows the relative impact of various transportation modes. We have also taken multiple measures to reduce climate impacts associated with domestic shipping. 2013 marked our second year as a Shipper Partner in the U.S. Environmental Protection Agency s SmartWay program. This voluntary partnership program has proven highly effective with participants in reducing freight and fleet energy consumption, and provides tools to calculate and monitor fleet emissions and identify targets for improvement. We seek out supplier relationships with shippers who are SmartWaycertified and work collaboratively with those partners to select the most efficient routes and modes available. Our Latin American teams are also working closely with their logistics providers to reduce the impacts of their shipments. For instance, SKY Brasil s logistics provider is developing reusable shipping containers that can be used repeatedly, rather than using corrugated boxes that require recycling after one use. OPERATIONS: A MORE EFFICIENT FOOTPRINT From our corporate offices and broadcast facilities to our call centers and distribution centers, we are finding ways to deliver best-in-class service while reducing energy requirements. Our 13 U.S. broadcast, uplink and engineering facilities incorporate the kind of cutting-edge technology that often requires significant electrical loads. In 2013, these broadcast centers implemented initiatives to reduce the mechanical loads needed to cool the facility. In one example, the retrofit of two chillers at our Los Angeles Broadcast Center with new highly efficient Turbocor compressors is expected to reduce carbon dioxide emissions by nearly 6,000 MTCO2e over the life of the project. This same facility also proudly features nine electric vehicle charging stations in response to high employee demand. Electric vehicle charging stations at our Los Angeles Broadcast Center. We also continued our rollout of an innovative solution that allows us to substantially reduce the amount of equipment required to collect broadcast signals from local television stations. By reducing equipment requirements, we were able to reduce energy consumption by more than 7 million kilowatt-hours. These and similar initiatives comprise part of our plan to reduce U.S. broadcast center emissions as part of our overall reduction strategy. By implementing many of these same strategies in our DIRECTV/SKY facilities in Latin America, we intend to lower GHG emissions by at least 10 percent by 2020 on a per-square-foot basis. ISSUES ENVIRONMENTAL STEWARDSHIP 28
ENERGY AND GHG EMISSIONS continued These facilities are also seeking unique solutions, like using biodiesel in their backup generators to reduce their impacts. At our corporate offices, call centers and warehouses, we have made significant improvements by designing new and refurbished facilities with efficiency in mind right from the start. Going forward, for example, we will make energy efficiency an important consideration for all new Latin American facilities and analyze opportunities to implement renewable energy when feasible. In fact, our recently opened office building in Quito, Ecuador, won an award from the Metropolitan Council of Quito for its impressive sustainability features. Our renovated headquarters campus in El Segundo, Calif., takes sustainability into account every step of the way by incorporating LEED standards in its design and renovation. One campus building achieved LEED Silver Core and Shell certification and LEED Platinum certification for Commercial Interiors, the highest certification available under the U.S. Green Building Council s certification system. Some of the strategies the designers used to meet this rigorous standard included providing occupancy sensors and introducing a high level of daylight to reduce the need for interior lighting, using the latest cooling equipment, and specifying ENERGY STAR appliances for the building. Further, the project utilized low-emitting materials in furniture, paints, coatings and sealants to protect indoor air quality. It is also close to public transit and provides electric vehicle charging stations, both of which give our employees options for how they travel to work. In other office locations, we have focused on efficiency upgrades such as lighting changes and adding variable-frequency drives to pumps and air handlers. In 2013, DIRECTV also developed sustainability guidelines for our Customer Care call centers and organized green teams to develop goals and manage local sustainability initiatives in six U.S. cities. Our green teams have kicked off programs to eliminate non-recyclable to-go boxes in several cafeterias. They ve also established incentives for employees to take advantage of reusable beverage containers, hosted electronic waste recycling events for our employees, and identified opportunities to eliminate paper from call center processes. Across the company, we re also deploying energy audits, lighting retrofits, more efficient server power supplies and enhanced energy monitoring and management, among many other projects. Upgrades to more efficient heating and cooling systems are playing a role as well. As we construct new data and broadcast centers, we are committed to using the most advanced technologies and working with providers that can significantly improve our power usage effectiveness. Finally, we are seeking to incorporate renewable energy supply into our strategy to reduce GHG emissions. We continue to evaluate the potential to add solar arrays to select facilities to further diminish our reliance on non-renewable energy sources. Water: New Strategies to Conserve a Precious Resource Although water is not a material issue for DIRECTV, we remain cognizant of the growing water scarcity problem in regions such as Southern California, the home of our corporate headquarters. Here, we are employing a range of water conservation strategies and technologies in existing, new and refurbished facilities. These include a program at our broadcast facility projected to reduce water consumption by an average of 700,000 gallons annually, simply by implementing a water treatment program to recycle the water through cooling towers for additional cycles before it is flushed. Further, our renovated headquarters building, which received LEED Platinum certification, reduced potable water use by nearly 40 percent against its calculated baseline. Our team accomplished this by utilizing water-saving strategies such as waterless urinals, low-flow toilets and water-saving faucets for lavatories and breakrooms. ISSUES ENVIRONMENTAL STEWARDSHIP 29
PRODUCT EFFICIENCY THINKING INSIDE THE BOX AND MAKING IT SMARTER Some of the most meaningful opportunities to reduce energy consumption and lower GHG emissions exist inside the receivers that deliver our premier digital entertainment into our customers homes and offices. There are tens of millions of DIRECTV receivers deployed in customer locations today. In 2013, we calculated that almost 3,880,000 MTCO2e of DIRECTV s Scope 3 GHG emissions were generated by the devices used by our U.S. and Latin American customers. Clearly, tremendous opportunity exists to reduce environmental impacts by improving the energy efficiency of our receivers. Our aspiration is clear to lead the industry in technology that delivers outstanding performance with the highest possible level of energy efficiency. That s why we have put some of our talented engineers to work to devise innovations Even though the number of DIRECTV receivers deployed in the U.S. increased in 2013, we were able to decrease the total energy consumed per deployed receiver by 6.5%, thanks to more energy-efficient technology. that reduce the energy demands of the receivers we provide to each of our 38 million customers in the U.S. and Latin America. Our 2020 goal is to reduce U.S. customer emissions attributable to the use of our equipment by 1 million metric tons of CO2e per year (relative to a 2012 baseline). That reduction target is both ambitious and impactful it is the equivalent of removing more than 210,000 passenger vehicles from the road. Recognizing that the largest impacts of our business lie beyond our four walls, this goal is also nearly five times larger than our own 2011 combined Scope 1 and Scope 2 emissions. By introducing several new and more energy-efficient receiver models in 2013, we continued to make substantial progress toward that goal. In the first year of measurement for this goal, we reduced our Scope 3 emissions associated with our receivers in the United States by more than 127,000 metric tons, an amount equal to nearly 70 percent of our 2013 total Scope 1 and Scope 2 carbon footprint. Since 2009, more than 95 percent of the new receivers we delivered to our customers were U.S. Environmental Protection Agency (EPA) ENERGY STAR qualified. We reached a major milestone in 2013 by procuring our 50 millionth ENERGY STAR qualified receiver. According to the EPA, an ENERGY STAR qualified receiver is 45 percent more energy-efficient than a non-qualified receiver. 1 We anticipate that the ENERGY STAR qualified receivers we purchased in 2013 alone will in aggregate save more than 672 million kilowatt-hours of electricity annually the equivalent of the electricity used by more than 55,000 U.S. homes 2 when compared against non-qualified receivers. And those energy reductions translate into big dollar savings for our customers. We calculate that our deployment of ENERGY STAR qualified equipment saved customers a combined $80 million off their energy bills in 2013. Cumulatively since the program began, our customers have reduced their energy costs by more than $500 million. Through our purchase of new ENERGY STAR receivers and refurbishment of older ENERGY STAR units, we are making rapid progress toward our goal for 90 percent of our total deployed receivers to be ENERGY STAR qualified by 2016. In fact, at the end of 2013, every new receiver we purchased was ENERGY STAR qualified. 1 Source: http://www.energystar.gov/products/certified-products/detail/set-top-boxes-cable-boxes 2 Source: http://www.epa.gov/cleanenergy/energy-resources/refs.html#houseenergy ISSUES ENVIRONMENTAL STEWARDSHIP 30
PRODUCT EFFICIENCY continued DIRECTV s commitment to energy-efficient products also includes participation in an unprecedented industry Set-Top Box Energy Conservation Agreement, expected to generate annual residential electricity savings of $1.5 billion or more. This Department of Energy-endorsed voluntary agreement, signed by the largest pay-tv service providers, as well as equipment suppliers and energyefficiency advocacy groups, calls for at least 90 percent of all new set-top boxes purchased and deployed after 2013 to meet the ENERGY STAR 3.0 efficiency levels. At DIRECTV, the bar will be raised even higher in 2014 when the more stringent ENERGY STAR 4.1 takes effect. PERCENTAGE OF ACTIVE RECEIVERS THAT ARE ENERGY STAR QUALIFIED 79.2 72.5 64.5 AVERAGE ANNUAL HOUSEHOLD ELECTRICITY USE OF A NEW HDDVR SYSTEM (kwh) 419 333 247 2011 2012 2013 2011 2012 2013 DIRECTV Chairman, President and CEO Mike White receiving ENERGY STAR Partner of the Year award from EPA's Beth Craig. DIRECTV NAMED ENERGY STAR PARTNER OF THE YEAR The U.S. Environmental Protection Agency (EPA) highlighted our industry leadership in energy-efficient product design when DIRECTV was named ENERGY STAR Partner of the Year for our contributions to energy efficiency and reducing GHG emissions. We are proud to be the only company in the pay-tv industry to ever receive an ENERGY STAR Partner of the Year award. DIRECTV is a longtime participant in the ENERGY STAR program, run jointly by the EPA and the Department of Energy, which sets voluntary energy-efficiency standards for many categories of consumer electronic products, including the receivers DIRECTV uses to deliver our entertainment services. ISSUES ENVIRONMENTAL STEWARDSHIP 31
PRODUCT EFFICIENCY continued REACHING OUT AND SETTING THE STAGE FOR CONTINUED EFFICIENCY IMPROVEMENTS Over the last year, DIRECTV has made significant contributions to receiver energy efficiency, including: Communicating the energy-efficiency message to millions of DIRECTV customers and more than 30,000 technicians and staff through e-newsletters and e-bills, social media, public service announcements (PSAs) on more than 50 networks a week, an in-house technician training channel and messaging sent to millions of deployed customer receivers. Partnering with key efficiency programs and research organizations to carry the efficiency of set-top boxes further and more quickly. Continuing to deploy the RVU (www.rvualliance.org) remote user interface technology, known as DIRECTV Ready, which drives down energy consumption even further by enabling a receiver-less connection to compatible RVU client devices including Smart TV models from Samsung, Sony, Toshiba and others. DIRECTV was also a leader in developing the RVU technology standard that enables programming to reach multiple TVs in the home while employing a much smaller hardware footprint. As smart TVs that are RVU-compliant, known as DIRECTV Ready,* continue to penetrate the marketplace, we expect to achieve even greater energy savings by providing our service to DIRECTV Ready televisions with no receiver required. Going forward, we anticipate that reducing customers hardware footprint by maximizing the potential of RVU technology will remain an important contributor to our overall energy-efficiency strategy. We also are pursuing opportunities to increase the efficiency of our Latin American set-top-box fleet. We are committed to ENERGY STAR certification for all new set-top-box models deployed in Latin America by the end of 2014. We also intend to reach at least 50 percent penetration of ENERGY STAR models in the region by 2017. *https://support.directv.com/app/answers/detail/a_id/3992/~/what-is-a-directv-ready-tv-and-how-does-it-work%3f. ISSUES ENVIRONMENTAL STEWARDSHIP 32
PRODUCT MATERIALS AND PACKAGING MANAGING PRODUCT MATERIAL INPUTS Globally, consumers and regulators have expressed increased interest in the chemicals and materials present in products or that are utilized during the manufacturing process. DIRECTV is compliant with the Restriction of Hazardous Substances (RoHS) Directive, adopted by the European Union. In addition, we have established internal processes to identify and monitor materials of concern (MOC). As that assessment continues, we are developing a roadmap to reach our goal for the elimination of 100 percent of any MOCs. Our product materials and packaging strategy encompasses both internal and external stakeholders. Internally, we host workshops to communicate our materials objectives to engineers and others responsible for the design of our products. We focus on substance management and compliance, identifying alternative materials and assuring reliable and responsible sources of supply. Addressing regulatory requirements and customer expectations at the early stages of product design strengthens environmental stewardship and can reduce costs. We are implementing new measures to strengthen our internal reporting processes to monitor and manage the chemicals currently being used. PACKAGING EFFICIENCIES AND INNOVATIONS Bulky and heavy product packaging consumes resources and increases environmental and business costs at every step of the supply chain. Unnecessarily large packaging means more resource and energy inputs during manufacturing requires more energy and expense to ship and is less environmentally friendly at end-of-life. With those considerations in mind, we devote considerable effort to selecting smaller and lighter packaging that enables multiple products to travel in one package. For example, our Genie Mini thin clients are shipped 10 to a carton eliminating waste and saving money. When durably designed, packaging can also be reused for multiple customer shipments. Our recovery kits, sent to customers when they return receivers to us, now feature an inner carton that DIRECTV can reuse up to 13 times before it needs to be recycled. Our search for increased packaging efficiencies continues. In 2014 we will introduce packaging totes for at least two high-volume products that will reduce the amount of material, cost and labor required to ship these products. These and other measures put us on course toward our 2020 target objective to reduce the packaging volume associated with our U.S. product shipments by 25 percent. ISSUES ENVIRONMENTAL STEWARDSHIP 33
e-waste AND RECYCLING The technological capability necessary to responsibly reuse, refurbish or recycle nearly every electronic device at the end of its useful life exists today but it requires commitment, people, processes and sufficient infrastructure to achieve a zero-waste future. We are proud to do our part to help move our industry forward in the reuse and responsible recycling of electronics both those that we install, as well as other end-of-life devices recycled on behalf of our customers. DIRECTV has joined with the Consumer Electronics Association (CEA) and other leading companies in an industry-wide effort, the ecycling Leadership Initiative. This broad-based campaign promotes and facilitates responsible recycling of consumer electronics. The Initiative s goal is to recycle 1 billion pounds of these materials annually by 2016. Our 2013 recycling performance led us to be named as one of only four companies joining Apple, Best Buy and Dell as 2014 Initiative Leaders. This highest designation is reserved for Initiative participants that annually recycle more than 125 percent of the consumer hardware goal established for their organization by CEA. A NEW PURPOSE FOR OLD ELECTRONICS Our recycling focus begins with the millions of receivers in our customers homes and businesses. Today we are making progress toward our goal to refurbish or recycle one receiver for every new receiver we purchase. Our lease model means that we get many of the receivers back from our customers, and we are working hard to drive our recovery rate even higher as we incentivize technicians and managers for their performance against this objective. Whenever possible, we refurbish equipment recovered from customers homes. Refurbishment avoids the associated resource impacts of mining the materials for and manufacturing those new units. In 2013 we refurbished and redeployed more than 7.5 million DIRECTV receivers to our U.S. distribution centers for customer fulfillment and more than 1 million units of other miscellaneous hardware electronics and accessories used during installation. In addition, we recovered 9.6 million DIRECTV access cards and redeployed 8.5 million while recycling the rest. ISSUES ENVIRONMENTAL STEWARDSHIP 34
e-waste AND RECYCLING continued RESPONSIBILITY AT EVERY STEP For devices that cannot be refurbished, we continue to recycle 100 percent of recovered equipment, including receivers and other customer-premise hardware, as well as the equipment used in our operations, such as desktop computers, laptops and monitors. To ensure responsible handling of each, we partner with electronics recyclers that are certified according to the nonprofit Sustainable Electronic Recycling Initiative s (SERI) R2 responsible recycling standards. An independent third-party auditor certifies every R2 recycler by performing an evaluation on more than 50 areas of operational and environmental performance. These standards define materials that can pose environmental concern and outline how these materials should be managed in an environmentally safe manner. The standards also require downstream due diligence on all vendors handling focus materials such as circuit boards, CRT glass and batteries. R2 designed its certification to ensure that materials are handled properly throughout the chain of custody, and that, for example, no unauthorized dumping of materials occurs outside the U.S. Please visit www.sustainableelectronics.org to learn more about R2 recycling standards. PARTNERING WITH CUSTOMERS TO DO MORE In 2013 we expanded our e-waste recovery efforts beyond our own operations and launched our customer recycling service, directv.com/recycle, which makes it easy for our customers to recycle outdated electronics for free. Consumers simply enter information about their equipment, print a free mailing label and ship their DIRECTV equipment or other devices cellphones, tablets, laptops and other electronics to our recycling partner to process. We communicate in multiple ways to our customer base to underscore the importance of recycling DIRECTV equipment and other consumer electronics. Through mailers, emails and direct customer communications via our call centers, we emphasize the importance of responsible e-waste recycling and the easy options available to customers to repurpose their devices responsibly. Thanks to our partnerships and our commitment to recycle 100 percent of the electronics we recover or can no longer use in our operations, we recycled 16 million pounds of e-waste in 2013 a more than 60 percent increase above our 2012 total. We calculate that our 2013 recycling efforts saved more than 43 million kilowatt-hours of energy that would have been necessary to extract natural resources for new products. ISSUES ENVIRONMENTAL STEWARDSHIP 35
OPERATIONAL WASTE MANAGEMENT WASTE DIVERTED FROM LANDFILL, 2012 VS. 2013 42.6% 51.7% AN ENTERPRISE-WIDE APPROACH TO WASTE Opportunities to reduce waste at DIRECTV extend across our organization and touch every part of our operations. Whether paper, cardboard, steel, plastic or other substances, the vast majority of these materials can be repurposed or recycled by employing effective initiatives. We have implemented a broad assortment of waste management initiatives in our facilities to advance our goal of reducing the amount of waste entering U.S. landfills by 95 percent by 2020. Our initiatives to reduce the size and weight of packaging and increase its reuse help to reduce waste upstream and contribute to our overall waste reduction efforts. For instance, we fully deployed a reusable cable caddy that reduced the need for packaging for spools of cable while improving the technician's experience. In addition, we expanded our cardboard baler and compactor initiative to include more than 60 of our highest-volume sites triple that of the previous year. We further supplemented our facilities' waste diversion initiatives through a partnership with the Pallet Alliance, which collects and reuses shipping pallets nationally. In conjunction with that effort, DIRECTV initiated a process for pallet collection and reuse. Within our offices, we continue to improve recycling and waste diversion efforts. In our New York office, all waste is sorted off-site in order to capture as much recyclable material as possible. Our two major corporate office sites in Colorado utilize industrial composting services, with more than 18,700 pounds of food waste composted in 2013. 2012 2013 TOTAL WEIGHT OF WASTE BY TYPE (tons) Landfill: 4,945 Recycling: 3,116 Baled corrugate: 1,170 Single stream: 847 Shredded paper: 171 In an effort to continue supporting our Televisionary initiatives, our Los Angeles Broadcast Center (LABC) became a Paper Cup-less facility to avoid the use of 160,000 biodegradable cups each year. To help with the transition, every employee was given a reusable mug. ISSUES ENVIRONMENTAL STEWARDSHIP 36
OPERATIONAL WASTE MANAGEMENT continued The comprehensive, multi-year renovation of our corporate headquarters campus in El Segundo, Calif., presented an opportunity for innovative diversion and re-use of waste. Our construction approach called for the diversion or repurposing of at least 95 percent of the waste generated in the new headquarters building. We are proud to report we achieved a 95.5 percent diversion rate (the minimum required for LEED certification was 50 percent). DIRECTV worked with ANEW, an innovative nonprofit that provides companies with alternatives to discarding their surplus furniture and other items, with the priority of Learn how we partnered with Scripps Networks matching it to charities, public Interactive to use DIRECTV surplus furniture, and agencies and underserved the talent of an HGTV designer and DIRECTV communities, to divert waste employee volunteers, to renovate the teacher s from landfills in practical ways lounge at an underserved Los Angeles school that supported our nonprofit serving special needs students. https://www. partners. Through this program, youtube.com/watch?v=_8w1f3pbru8 more than 300 metric tonnes of potential waste was diverted from landfills. This included more than 50 metric tonnes of surplus office furniture finding a new home with 15 different community recipients. MARKETING MATERIALS USED BY WEIGHT* (thousands of pounds) 41,030 42,208 40,922 2011 2012 2013 *Marketing paper only. MORE WAYS TO GO PAPERLESS Paperless billing is good for the environment and for our customers, as it saves them millions of dollars in postage and reduces the risk of identity theft and fraud. Accordingly, the number of customers enrolling in paperless billing continues to increase growing by nearly 50 percent in a single year. Today, more than 30 percent of our customer base participates in paperless billing, reducing costs and avoiding the consumption of more than 300 tonnes of paper per year. Whenever possible, we now provide customers the information they need in an electronic, rather than printed, format. For instance, our receiver instruction manuals have been available online for several years now to avoid printing and distributing millions of manuals. In addition, new customers who sign Sign up to Go Paperless at: www.directv.com/gogreen up with an email address receive full terms and conditions via email rather than postal mail. Likewise, email distribution of our Customer Agreement and Privacy Policy eliminated the need to print and mail more than 37 million pieces of paper in 2013. When paper is necessary for marketing and general office purposes, we work to minimize the amount of paper needed and maximize the use of recycled content. For instance, our main office in Buenos Aires has reduced paper consumption nearly 60 percent by using an innovative software solution to reduce printing. Each year as part of our marketing efforts, we distribute millions of printed advertising circulars and shared mail pieces. In 2013, over 56 percent (by weight) of these materials were made from recycled content. We calculate that the use of recycled paper for these marketing materials reduced the number of trees required by 185,000 and reduced GHG emissions by almost 8,900 MTCO2e.** We continue to look for ways to further engage our suppliers to improve the sustainability performance of the printed materials we produce. ** Environmental impact estimates were made using the Environmental Paper Network Paper Calculator version 3.2. For more information, visit www.papercalculator.org. ISSUES ENVIRONMENTAL STEWARDSHIP 37
SUPPLIER SUSTAINABILITY EXTENDING SUSTAINABILITY THROUGH OUR SUPPLY CHAIN Our suppliers are important business partners in DIRECTV's ongoing pledge to deliver the highest-quality entertainment to our customers. The largest aspect of our supply chain involves products used for customer installations, such as receivers and home satellite dishes. A formal process is in place to identify sustainability risks in our supply chain. We utilize a risk management product scoring system to assess vendor resiliency in the following areas: components, suppliers, manufacturing and equipment quality. Conflict mineral use and codes of conduct are among the sustainability topics that this assessment covers. In early 2014, we will further strengthen our supply chain oversight by adopting the Electronic Industry Citizenship Coalition (EICC) Code of Conduct and becoming an EICC member. Through this effort, we will commit to progressively aligning our own operations with the provisions of the EICC Code of Conduct and encouraging and supporting our first-tier suppliers to do the same. The EICC Code of Conduct applies to all companies outside the United States manufacturing electronic components used during DIRECTV product installations. Requirements of the code specify that suppliers comply with all relevant laws and that the suppliers working conditions are safe, workers are treated with respect and dignity, and business operations are conducted in an ethical and environmentally responsible and ethical manner. ISSUES ENVIRONMENTAL STEWARDSHIP 38
ISSUES CUSTOMER EXPERIENCE COMMITTED TO BEING THE BEST Long known for our focus on the customer, DIRECTV set out in 2012 to evolve our efforts and deliver an unparalleled customer experience. In the U.S. market, our objective is straightforward: Win customer loyalty for life. Our highly competitive industry means it is more important than ever that we elevate the DIRECTV experience in ways that delight new and existing customers. We remain focused on building an organization that puts the customer at the center of our decision-making and continuously improves to deliver our best each time a customer interacts with our products, services or employees. We promise our customers that we will: Celebrate their loyalty Be clear, simple and straightforward in our business practices Offer the best service in the industry Provide the ultimate video entertainment experience CUSTOMER SATISFACTION AND LOYALTY We seek to delight our customers by providing the best video entertainment experience anytime and anywhere for our customers in the U.S. and Latin America, while also creating an unrivaled customer experience. We re committed to DIRECTV being the best choice for consumers throughout the Americas. Our best measure of success in this endeavor is the loyalty of our customers, year after year. Industry accolades and rankings are also a testament to our success in fulfilling our mission. In independent studies of our pay-tv industry, customer feedback routinely ranks DIRECTV as one of the highest for customer satisfaction. For example, in the U.S., DIRECTV has scored higher than the largest national cable providers in customer satisfaction for 13 consecutive years in the American Customer Satisfaction Index (ACSI). The 2013 ACSI survey ranked DIRECTV first in seven individual survey measures, including picture quality, HD picture quality, channel range, premium channels availability and website satisfaction. In 2013, we made significant progress in using an additional measure of customer loyalty Net Promoter Score (NPS) to quantify how we re doing and to inform how we can improve. NPS is a standard measure used by companies throughout the world to gauge a customer s loyalty by asking about their willingness to recommend a product, service or company to their friends or family. We believe NPS is a meaningful indicator of how well we are delivering against our mission and our promise to customers that they ll have the best video entertainment and customer experience. By measuring NPS and acting upon the insights we gain, we can further strengthen the role that customer experience plays in defining the DIRECTV brand, driving higher loyalty levels and meaningfully differentiating DIRECTV from competitors. That same commitment to exceed customer expectations and lead the industry in customer satisfaction extends to Latin America. There, as in the U.S., our video and audio programming is 100 percent digitally delivered, providing subscribers with digital-quality video and audio as well as interactive features and functionality. This capability sets us apart from many cable providers in Latin America that typically continue to broadcast to a large number of their subscribers in analog format. We also leverage our leading brands and scale to offer unique and compelling content to subscribers in the region. ISSUES CUSTOMER EXPERIENCE 39
CUSTOMER EXPERIENCE continued A COMMITMENT TO CUSTOMER PRIVACY DIRECTV is dedicated to protecting our subscribers privacy. We annually distribute a Privacy Policy* to all our subscribers that explains how DIRECTV collects, uses and discloses information about them when they subscribe, access and use our products and services. The privacy policy is also posted on directv.com. The privacy policy applies to information collected by DIRECTV from our set-top boxes and other platforms (such as mobile apps, websites and gaming consoles) authorized to receive our services. Our privacy policy also informs our subscribers about their choices regarding DIRECTV s use of the information we collect. DIRECTV implements administrative, technical and physical safeguards to protect the information we collect. This includes educating our employees on appropriate practices to keep their information confidential and secure. * www.directv.com/dtvapp/content/legal/privacy_policy. ISSUES CUSTOMER EXPERIENCE 40
ISSUES DIVERSITY AND INCLUSION OVERVIEW The markets we serve in the U.S. and Latin America are diverse, dynamic and rapidly evolving, and we recognize that we need a workforce that fully reflects our customer base and understands the needs of each customer segment. As a technology business, we are critically dependent on a constant stream of innovation, and that depends on having diverse ideas and fresh thinking fostered by a diverse workforce. As a service business, an inclusive workplace culture is key to fostering collaboration, productivity and engagement. DIRECTV s diversity and inclusion strategy is focused on three areas: our Workforce, our Workplace and our Marketplace. This strategy encompasses: How we recruit, develop and promote talent Our supplier relationships Our interactions with tens of millions of customers on two continents EARNING RECOGNITION FOR LEADERSHIP At DIRECTV we are proud to have earned recognition in recent years for the effectiveness of our diversity and inclusion initiatives and for our progress in creating a positive, productive and fulfilling work environment for all employees. Among the notable recognitions we have received: Human Rights Campaign (HRC): The HRC awarded DIRECTV a 2013 Corporate Equality Index Rating of 95 out of 100, and placed DIRECTV in the Green Zone in the Human Rights Campaign s Buyer s Guide. The Corporate Equality Index is a national benchmarking survey that reports on corporate policies and practices relating to lesbian, gay, bisexual and transgender (LGBT) rights and workplace equality. This high rating reflects transparency in reporting and parity in employee benefits, workplace culture and philanthropic contributions. Our green rating also distinguishes DIRECTV as part of a select group of businesses and brands that receive the HRC s highest workplace equality scores. The Great Place to Work Institute: In 2013, DIRECTV Latin America ranked #12 on the institute s list of Best Multinationals to Work for in Latin America, * based on the "Best Companies to Work For" ranking awarded to DIRECTV s Brazil, Colombia, Ecuador and Uruguay operations in 2012. Also in 2013, DIRECTV s Argentina, Uruguay and TELECENTER operations each ranked as Best Companies to Work For, and DIRECTV s Puerto Rico operation was listed among the island s Mejores Patronos (Best Employers List). Towers Watson: Towers Watson selected DIRECTV to its U.S. High-Performing Companies Norm starting in 2011, based on superior financial performance and people practices, as measured in our Organizational Health Survey. One of the survey categories encompasses employees assessment of management s commitment to diversity and inclusion in the workplace. * Each year Great Place to Work recognizes the top-20 multi-national companies that ranked as Best Workplaces in at least three countries the year prior. The award highlights the companies that stand out for creating a consistent, high-trust workplace culture across national borders. ISSUES DIVERSITY AND INCLUSION 41
WORKFORCE ENTERTAINING OUR FUTURE Our commitment to diversity begins with the recruitment and selection of candidates with diverse backgrounds. Recruitment efforts are targeted to identify prospective employees with a broad range of varied backgrounds. We also source talent from organizations including the T. Howard Foundation, STEM Advantage and All Stars Project, which develop and place talented and diverse youth in leading companies. Our college internship program is another valuable component of our diversity outreach efforts. The program continues to build a diverse pool of talent, thanks in part to our relationships with organizations and universities that share our diversity objectives. Our 2013 intern class included 120 interns from 61 colleges and universities across the country. In each of the last three years, people of color have comprised more than 50 percent of internship participants in the U.S. We hire candidates with disabilities and ensure that they have a work environment conducive to their performance. Our major work locations are ADA-compliant and wheelchair-friendly, and we provide accommodations for medically driven employee requests. In addition, we provide state-of-the-art ergonomic accessories for DIRECTV employees. Our talent management process is structured to drive diversity throughout every phase of our talent pipeline ensuring that the diverse individuals we hire are afforded opportunities to grow and advance in their careers. For example, in Latin America, DIRECTV Argentina is expanding its ranks of female leaders through a program designed to support women in their career development through training, coaching and networking opportunities. In 2008, DIRECTV s Service and Repair Operations department launched a partnership in Los Angeles with AbilityFirst, an organization that provides opportunities for individuals with developmental disabilities to learn job skills and find gainful employment. Through this partnership, more than 15 AbilityFirst employees, help prepare DIRECTV access cards for recycling. Through this program, DIRECTV has gained talent through AbilityFirst while being more sustainable and creating cost savings by recycling and reusing access cards. We regularly measure workforce representation to ensure that this information is incorporated into our talent management programs and shared with leadership. This process is also designed to benchmark DIRECTV against the overall available U.S. labor force in terms of female and minority representation. The data indicate that our recruitment and talent management strategies are effective, as the composition of the 2013 DIRECTV U.S. workforce once again showed strong representation by women and minorities as compared to the U.S. benchmark. In Latin America in 2013, women represented nearly half of our workforce in the region. ISSUES DIVERSITY AND INCLUSION 42
WORKFORCE continued 2012 AND 2013 EMPLOYEE DIVERSITY DIRECTV U.S. 2012 2013 Female 30% 30% People of Color 38% 40% U.S. Benchmark 2012 2013 Female 34% 34% People of Color 29% 29% DIRECTV Latin America 2012 2013 Female 53% 49% People of Color N/A N/A Data represents full-time and part-time employees. In 2013, 43 percent of our U.S. new hires were people of color, and the retention rate for people of color was 79 percent. WELCOMING VETERANS HOME WITH A NEW MISSION DIRECTV seeks employees who are goal-oriented, team-oriented and who approach their work with a sense of passion and dedication. Many U.S. military veterans embody those characteristics, and we are committed to tapping that valuable resource. When we hire qualified veterans, we do our part to help service members transition from military to civilian careers and we make a strong team even stronger. That is why we have joined the 100,000 Jobs Mission, a coalition of more than 150 companies committed to the collective goal of hiring 100,000 transitioning service members and military veterans by 2020. As a result of the strong performance of participating companies, the Mission reached its initial goal seven years early and has now doubled it with a new objective to hire 200,000 veterans by the end of the decade. By May 2014, Mission partners had hired more than 140,000 former service members. DIRECTV has brought on board nearly 600 veterans since the program began. Our veteran recruitment efforts include targeted recruitment events as well as online strategies including a special website directv-veterans.jobs that enables veterans to conduct an online job search by matching our openings against military occupational specialties. DIRECTV s support extends to the families of active service members as well. In 2013 we joined the Military Spouse Employment Partnership, an organization comprised of private- and public-sector partners that serves as an employment resource for military spouses. To date, the Partnership has connected more than 60,000 military spouses with opportunities at over 220 participating organizations. ISSUES DIVERSITY AND INCLUSION 43
WORKPLACE FOSTERING A DIVERSE AND INCLUSIVE WORK LIFE We are committed to a workforce that is diverse in composition and a workplace that is inclusive and welcoming, offering every team member the opportunity to contribute to DIRECTV s success. Our Employee Resource Groups (or ERGs) are important contributors to our diverse culture. These employee-organized groups, each championed by an executive sponsor, enrich the professional and personal growth of employees with common interests. Members also drive our progress in building an inclusive culture by identifying areas for continued improvement. ERGs are open to all employees who support the group s mission, and each serves as an important vehicle for mentoring, networking, personal and career growth, and volunteerism. Vice President of Communications Caroline Leach notes that collectively, our ERGs foster employee engagement, development and innovation, while they advance business initiatives. Employees recruit their colleagues to participate in AIDS Walk Los Angeles In 2013 we increased the level of collaboration among our five ERGs. A great example was the 30th Annual AIDS Walk Los Angeles. Strong recruitment and fundraising support by our ERGs increased participation by all of our business units. Collectively, DIRECTV 2013 AIDS Walk participants raised $73,000 the second-highest total among participating teams. Our ERGs continue to play an important role in enhancing our workforce and strengthening our culture of diversity and inclusion. Each year, leaders of the ERGs meet with Mike White, DIRECTV s Chairman, President and CEO, and members of the DIRECTV senior leadership team to discuss progress and future plans. Our goals are to increase the number of participants in current groups, expand the number of ERGs and attract participants from more segments of our workforce. Membership today is concentrated at our larger company sites, led by our corporate headquarters in Southern California. We are pursuing initiatives to encourage broader participation at more of our locations. For example, at our Huntsville, Ala., Customer Care Center, a pilot is underway for a new Working Parents ERG. The group shares information and resources on how to effectively manage and balance work and family responsibilities. Our five employee resource groups (ERGs) include: BAALANCE (Building African-American Leaders and Navigating the Company Experience) is our newest ERG, which launched in late 2013. It comprises African-American employees and employees who support the group s mission. BAALANCE is currently recruiting members and developing its action agenda to develop initiatives to support African-American employees in their careers at DIRECTV. Looking ahead to 2014, BAALANCE initiatives will focus on mentoring and professional development, community outreach and building an active member base of both African-American and other interested employees. The group s executive sponsor is Mike Palkovic, Executive Vice President, Services and Operations. The Latino Network Connection is dedicated to fostering the professional development of Latino employees, community outreach and talent acquisition to drive innovation in business development. Its more than 200 members have identified four pillars to support their mission: networking, professional development, community outreach and DIRECTV special events. Through events such as toy drives, a fundraising ISSUES DIVERSITY AND INCLUSION 44
WORKPLACE continued run/walk and packaging meals for people in need, this ERG is making a difference by addressing community needs. By using focus groups and seeking input from its members, Latino Network Connection is working to leverage the expertise and experience of its members to better inform company initiatives targeted to the growing Latino market. For example, more than 30 Latino Network Connection members participated over two days to provide feedback on future products. The group s executive sponsor is Jacopo Bracco, President, DIRECTV PanAmericana. OUT@DIRECTV supports lesbian, gay, bisexual and transgender (LGBT) employees and those who support the LGBT community. Its members are committed to LGBT equality and maintaining an open and inclusive workplace. Founded in 2011, today OUT@DIRECTV has attracted more than 150 members working in Los Angeles, New York, Denver and in our call centers. The group s principal initiatives are employee development, community development, including charitable giving and volunteerism, and business development to ensure that equality is factored into purchase decisions. OUT@DIRECTV s advocacy and engagement has served as a catalyst for the kinds of positive organizational change that has led to DIRECTV receiving a Corporate Equality Index Rating of 95 out of 100 and designation in the "Green Zone" in 2013 by The Human Rights Campaign for our LGBT-inclusive workplace practices. OUT@DIRECTV s executive sponsor is Paul Guyardo, Executive Vice President and Chief Revenue and Marketing Officer. Women s Leadership Exchange (WLE) creates opportunities for women by contributing to a culture that attracts, develops and enhances the experiences of all employees. Founded in 2006 as our first ERG, the group s membership has grown to around 1,200 members. The extensive programs for WLE s Los Angeles, Denver and New York groups include speaker forums, networking events, working parent groups, Toastmasters and well-established mentoring programs. In 2013, WLE speakers included Roxanne Austin, former President and COO of DIRECTV and Kim Martin, General Manager and President of WE tv. More than 125 mentors, predominately female, are currently paired with mentees to focus on career development, leadership skills, networking and personal brand image. The WLE has also established peer mentoring groups and holds an Annual Mentor Walk, pairing mentors with several mentees for a lunchtime event drawing more than 200 attendees. The group s executive sponsor is Dan York, Executive Vice President and Chief Content Officer. The mission of the Young Professionals Network (YPN) is to provide unique opportunities and resources for young DIRECTV professionals in order to maximize their personal and professional growth through relationship-building, knowledge-sharing, leadership and company brand promotion. When it comes to professional growth, YPN continues to lead by example with a robust constituency of more than 700 members, including a growing chapter in DIRECTV s New York office. With around 50 percent of DIRECTV s workforce under age 35, an important goal for YPN is to better connect generations in the workplace while enabling members to build their networks and expand their range of potential. YPN s executive sponsor is Joe Bosch, Executive Vice President and Chief Human Resources Officer. EMPLOYEE RESOURCE GROUPS AT DIRECTV MEMBERS Building African-American Leaders & Navigating the Corporate Experience (BAALANCE) 82 Latino Network Connection (LNC) 235 OUT@DIRECTV (LGBT community) 150 Women s Leadership Exchange (WLE) 1,200 Young Professionals Network (YPN) 700 ISSUES DIVERSITY AND INCLUSION 45
MARKETPLACE FORTIFYING DIVERSE SUPPLIER RELATIONSHIPS Strong and mutually beneficial relationships with communities, industry, customers and suppliers are an important part of our diversity and inclusion formula. Broad diversity characterizes our 38 million customers across the Americas, and we work diligently to ensure that every aspect of our organization, from marketing to programming to purchasing, is aligned with those perspectives. DIRECTV s objective is to ensure that we have a diverse network of suppliers to fulfill our business needs. Our procurement team has developed and implemented a comprehensive policy to track relationships with qualified women- and minority-owned suppliers. We continue to expand our efforts to source goods and services from historically underutilized businesses. ISSUES DIVERSITY AND INCLUSION 46
ISSUES TALENT MANAGEMENT OVERVIEW LEVERAGING TALENT TO DRIVE EXCELLENCE We believe that our employees' commitment to excellence is integral to the success of our strategy and to the future of our company. Every day, our goal is to advance a service-oriented culture focused on building lifelong customer relationships. Continuing to lead in technology, content and service requires deep talent, diverse perspectives and far-reaching opportunities for our employees to grow and excel. Our workforce strategy is aligned with the objective to recruit and develop the strongest team in our industry. We strive to ensure that every member of the DIRECTV team is committed to our company values: leadership, innovation, decisiveness, agility, teamwork and integrity. Sustaining a high level of employee engagement and developing the talent among our current workforce cultivates an environment of strong loyalty to our organization, our customers and to each other. Moreover, that strong sense of loyalty can be directly correlated with increased customer satisfaction, productivity and profitability. Because our continued success as a company is fueled by the success of our people, we have intensified our leadership development programs. In addition, we continue to increase our already strong emphasis on diversity and an inclusive workplace culture to foster higher levels of innovation, engagement, crossfunctional teamwork and collaboration. DIRECTV President, Chairman and CEO Mike White leads a session as part of the company s Leadership Development Program for senior leaders. ISSUES TALENT MANAGEMENT 47
RECRUITMENT BUILDING THE BEST TEAM Our ability to establish sustainable competitive advantage and grow as a company relies in a significant way on our ability to recruit the strongest talent in the industry. To that end, we deploy an array of recruitment strategies that include a strong emphasis on securing a diverse pool of candidates. These initiatives encompass job fairs and networking opportunities, and in 2013 our outreach efforts included sponsorship of the Society of Women Engineers Conference; a student-focused hackathon competition, LA Hacks; and participation in the National Hire a Veteran and Military Spouse Day Virtual Career Fair. As part of the DIRECTV intern program, participants attend weekly presentations to learn about the business and present to the senior leadership of their department at the end of the summer about their work to help DIRECTV meet its goals. Additionally, at select locations interns also attend a ride-along with a DIRECTV Home Services technician to better understand DIRECTV s customer experience. Our internship program is also a major conduit to attract outstanding, diverse talent to DIRECTV. For many, when their internship concludes, their contributions to the company are just beginning, and we strive to offer many top-performing program alumni full-time positions with DIRECTV. In 2013, more than 40 percent of the intern class were people of color. ISSUES TALENT MANAGEMENT 48
Drives engagement through inspirational leadership 2013 DIRECTV Corporate Social Responsibility Report DEVELOPMENT Recruiting and selecting great talent is only the start of creating an industry-leading workforce. To ensure that every team member reaches their full potential, we have established a culture of continuous learning, growth and development for our employees. Our approach is based on the knowledge that as each DIRECTV employee expands their capabilities and leadership skills, they will also help build a stronger future for our company. We have implemented a multi-tiered Leadership Formula to guide our development efforts. The components are aligned to: Knows the business, the industry and the market Demonstrates sound strategic thinking Innovates & effectively challenges the status quo Set performance expectations and create a clear road map for career progression; Define specific competencies and leadership attributes used to measure employee performance; Specify what constitutes successful leadership at every level of the company; and Provide a framework for leadership development programs and road map of courses. Employees who participate in leadership development programs become more effective leaders and are better able to build talent. DIRECTV has several programs designed to encourage higher levels of engagement, cross-functional collaboration and innovation. Acts with a mindset of inclusion & teamwork Is selfaware and savvy Builds productive relationships Knows their functional area Business Judgment Do It the Right Way Acts with Integrity Coaches and develops next-generation talent DIRECTV Leadership Formula Build Talent Set a Strategic Direction Focuses on the customer with passion Deliver Results Attracts top talent Achieves results Leads change Sets clear priorities ISSUES TALENT MANAGEMENT 49
DEVELOPMENT continued COACHING AND LEADERSHIP ESSENTIALS TRAINING (percentage of participation) Home Services: 40% Enterprise: 24% Customer Care: 36% Coaching and Leadership Essentials (CLE) is a program for managers that teaches leaders to build productive, meaningful relationships with employees, lead effectively and develop talent through coaching and performance management. The program combines online advance coursework, a multi-day, in-person course and offline follow-up tools to create a consistent and effective coaching model to support talent development. In addition, an advanced version of the course positions leaders of leaders to leverage the skills learned by their direct reports in Coaching and Leadership Essentials. To date, we have had more than 2,200 managers attend the program across all business units. The program has had a significant impact on employee engagement, as the teams of managers who participated in the CLE program have higher engagement scores (by 6 points) than the teams of managers who have not participated in the program. In addition, those managers who participated in the program are seen as higher performers by leadership. The feedback we receive from our participants is also very strong, with 99 percent recommending the program to a colleague. As such, CLE is helping to build a talent- and teamwork-oriented culture at DIRECTV. In the U.S., our Leadership Development Program (LDP) is a week-long session led by our Chairman, President and CEO that focuses on strategic thinking, building talent and doing things the right way. Specifically, the program is targeted around the following three key learning objectives: (1) gain deeper self-awareness of motivations, values, leadership strengths and opportunity areas; (2) build perspective and the skills to develop a business strategy; and (3) learn skills to improve effectiveness of your team and team members. Since 2010, more than 230 senior leaders have participated in the program, which equips participants to develop themselves and their teams to build organizational performance by taking skills to the next level. The impact of the LDP has been seen on an individual level with an accelerated personal performance and promotion rate for LDP participants, a self-reported increase in cross-functional collaboration by 85 percent, and a reported positive financial impact of up to 35 percent in cost savings. In Latin America, The Leadership Foundations Program a sister program to the U.S. Leadership Development Program is structured ENGAGEMENT SCORES Direct reports of CLE participants have higher engagement scores than those of non-cle participants to build leadership skills targeted to specific strategic imperatives for DIRECTV Latin America. The Latin American program completed its second year in 2013, and to date, 50 participants from nine countries have taken part in this transformative experience. Both of these programs are intended to develop diverse leaders to help drive our business into the future. 90 CLE 84 Non-CLE ISSUES TALENT MANAGEMENT 50
DEVELOPMENT continued As an additional resource to these programs, we offer senior leaders executive coaching opportunities and one-on-one coaching based on 360-degree performance feedback. More than 800 leaders at DIRECTV have received a 360-feedback survey as an instrumental development tool. To encourage a continuous improvement and feedback-rich culture, leaders have the opportunity to retake their 360-feedback survey every 24 months to track their progress and continue on their leadership development journey. SELF-REPORTED IMPROVEMENTS FROM U.S. LEADERSHIP DEVELOPMENT PROGRAM PARTICIPANTS 83% 68% 85% 35% Personal Performance Departmental Performance Financial Impact Cross-Functional Collaboration The Development Portal is a resource available to all employees at every stage of their career journey. This is a centralized starting point for online resources and courses on leadership competencies and critical technical skills. Here employees at all levels can access resources to build their Leadership Formula competencies, take career interest and strengths assessments and access our online learning management system, which features an extensive library of resources such as Harvard ManageMentor, plus desktop and project management training. Several of our departments, including Human Resources, Finance and Information Technology, offer rotational programs in which participants rotate assignments in order to gain perspective on different facets of the function and build critical skills to advance quickly. CORE, our company intranet and social collaboration platform, enables greater connectivity and communication across all departments. Some of the most popular and frequently read content is found in the CEO's and executives' blogs, which also provide a forum for direct feedback and dialogue with senior leadership. In 2014, there is more on the horizon as we continue to build out our leadership development road map with a high potential employee program for mid-level leaders to accelerate their leadership development, as well as a suite of courses grouped as Management Essentials to help prepare new managers for their transition into leading people. In addition, we will continue to evolve and grow our online resources available to all employees through merging and evolving the resources on the Career Development Portal to the LEARN@DIRECTV System. ISSUES TALENT MANAGEMENT 51
HEALTH AND WELLNESS Ensuring that our employees have the resources and tools they need to remain healthy and safe is an important component of our talent management strategy. Beyond our comprehensive healthcare coverage, we believe it is important to offer resources that promote disease prevention and healthy lifestyles. We offer virtual and telephonic health coaching and support, a 24-hour nurse hotline and access to a physician 24/7 through our telemedicine program. In addition, we provide health screenings, flu shots, a company-paid tobacco cessation program, wellness seminars and incentive programs that promote weight loss, physical fitness and other healthy programs. Health and wellness at DIRECTV includes support and resources to enhance all aspects of our employees well-being. Our Employee Assistance Program is available to all family members and provides counseling for a number of life issues. To address professional and personal stress, we conduct time management and stress management workshops and financial education seminars and classes. I believe wellness in the workplace is crucial to work-life balance. Offering a Wellness Program at DIRECTV really gives me a sense that DIRECTV cares about my well-being. Debi Content Strategy and Development ISSUES TALENT MANAGEMENT 52
ISSUES LOCAL COMMUNITY IMPACT OVERVIEW In the U.S., more than 140 volunteer projects were completed by DIRECTV employees who logged nearly 18,000 volunteer hours. MORE WAYS TO CARE In the U.S. and throughout Latin America, DIRECTV continues to add new chapters to our story of community outreach and service. As part of our Corporate Citizenship strategy, we seek new ways to leverage the talent of our employees and the resources of our company to positively impact communities across the Americas. Support for K-12 education is a core focus of our corporate citizenship strategy, but our efforts do not stop at the classroom door. Employee volunteerism, cash donations, gift matching, in-kind contributions especially complimentary DIRECTV service and one-on-one youth mentoring are but a few of the ways we help to make our communities stronger. Whether we're building and beautifying parks and playgrounds, broadening the career horizons of young people or distributing school supplies to high-need students, we are expanding upon our efforts and finding impactful ways to contribute to hundreds of communities on two continents. Volunteers at a Las Vegas school beautification project completed by DIRECTV employees, dealers and partners, and local community members. ISSUES LOCAL COMMUNITY IMPACT 53
DIRECTV LATIN AMERICA VOLUNTEERISM HELPING TO ENSURE A BETTER BUILDING FOR THOSE HELPING TO BUILD BETTER FUTURES In Latin America, DIRECTV s unique volunteer initiative Piedra Papel Tijera (Rock Paper Scissors) is designed to identify and address community needs, while at the same time informing more than 1 million viewers each year to help broaden their support and build awareness for issues and organizations. The initiative is a central component of Generación DIRECTV, our comprehensive corporate social responsibility program in Latin America that addresses community and human needs across the region. Piedra Papel Tijera projects focus on renovating and beautifying the physical infrastructure of schools and community organizations. Since its inception in 2009, more than 5,000 DIRECTV volunteers have dedicated more than 45,000 volunteer hours to this transformative program. Their work has expanded capacity and improved facilities at schools, orphanages and other care facilities, while improving the quality of life for those served by these organizations. Projects in 2013 included rebuilding a shelter for homeless children with disabilities in Puerto Rico, renovating a nursing home in Ecuador, enhancing the facility of a violenceand delinquency-prevention center in Venezuela, and assembling new structures for a daycare and early education center in Perú. Each volunteer project is filmed and broadcast as an episode of the Piedra Papel Tijera television show, which is now in its fourth year. This show tells the stories of the organizations and people who have benefited from these volunteer projects and raises awareness for their causes. This popular program launched in 2010 on DIRECTV Channel 999, where it has become a top 15 show, attracting more than 1 million viewers in 2013. Last year, several hundred viewers contacted us to indicate their desire to volunteer on future projects, and customers have since been invited to participate in select projects. An employee in Lima, Perú, volunteers at a Piedra Papel Tijera volunteer project with her two children. As of 2013, 73 Piedra Papel Tijera volunteer actions had been completed across the markets we serve. These endeavors have attracted the volunteer participation of more than 43 percent of our employee base in the region. In 2013, we reached new heights during a record-breaking year for Piedra Papel Tijera. The number of volunteer projects completed increased by nearly 60 percent year-over-year, with a total of 27 separate initiatives in nine countries and more than 15,000 volunteer hours in a single year. ISSUES LOCAL COMMUNITY IMPACT 54
DIRECTV LATIN AMERICA VOLUNTEERISM continued I think it is wonderful and inspiring, the work that you ve been doing (with PPT) to make the world a better place. I wish to participate as a volunteer in your activities. Jessica, DIRECTV subscriber, Venezuela Each episode that I watch, I see clearly that the help you provide brings in me this desire to help with all the beautiful work you do. The episode of the orphanage in Quito brought tears to my eyes, since I also work with children. Sincerely, I d love to help join your efforts to serve our fellow man. María Soledad, DIRECTV subscriber, Argentina A Piedra Papel Tijera volunteer project in Cali, Colombia. A Piedra Papel Tijera volunteer project in Santiago, Chile. ISSUES LOCAL COMMUNITY IMPACT 55
U.S. VOLUNTEERISM GIVING BACK WITH OUR TIME AND TALENT Volunteerism is an important part of DIRECTV s culture. Across the U.S., employees dedicate their time and talents to give back to their communities in meaningful ways, completing a vast array of projects from school beautifications to student mentorship to sorting and organizing donations at food banks. We recognize the value of volunteerism toward building teams and helping people to develop strong relationships with their colleagues and communities. In 2013, more than 140 volunteer projects were completed by DIRECTV employees in the U.S., helping DIRECTV reach a record number of nearly 18,000 volunteer hours across the U.S. Below are just a few examples of the transformative volunteer projects undertaken by DIRECTV employees. 2013 Revolution Day of Service In April, more than 800 DIRECTV dealers, employees and partners volunteered to give back throughout the Las Vegas community. During our third Revolution Day of Service, which kicked off DIRECTV s annual Revolution Dealer Conference, DIRECTV employees, dealers and partners signed up in record numbers, making this DIRECTV s largest volunteer event to date. Working together, volunteers built a new playground with KaBOOM! for the Down Syndrome Organization of Southern Nevada, organized food and supplies at Three Square Food Bank, revitalized the Vegas Roots Community Garden, beautified Arturo Cambeiro Elementary School and helped with the construction of three new Habitat for Humanity homes. Watch our Revolution Day of Service in action at https://www.youtube.com/watch?v=xytbykzqmay. DIRECTV has held a Day of Service at its annual dealer conference since 2011. In New Orleans in 2011 and Atlanta in 2012, our volunteers participated in two record-setting playground builds with nonprofit partner KaBOOM!. Each of these playgrounds was built by DIRECTV dealers, employees, partners and local community members, in just one day. DIRECTV Leadership Volunteer Project In January, DIRECTV s leadership came together in Los Angeles, and as part of a larger meeting, beautified a high-need K-8 charter school. In total, nearly 200 vice presidents and above from across the Americas worked together to create privacy fencing, refresh landscaping, paint murals and build tables for a student outdoor learning space. ISSUES LOCAL COMMUNITY IMPACT 56
U.S. VOLUNTEERISM continued Teachers Lounge Renovation In November, DIRECTV completed a volunteer project that reinforced the company s commitments to both sustainability and education. As a result of the renovation of DIRECTV s headquarters in El Segundo, Calif., we sought an environmentally friendly way to extend the life of surplus office furniture. DIRECTV partnered with our programming partner Scripps Networks Interactive, parent company of HGTV and DIY Network, and nonprofit Rebuilding Together, to renovate the teachers lounge at a school in East Los Angeles serving students with special needs. An HGTV designer developed a plan to renovate the school s teachers' lounge using donated furniture. Together with DIRECTV employee volunteers, the lounge was transformed to create a comfortable, collaborative space for educators to enjoy during their breaks at school. Please see https://www.youtube. com/watch?v=_8w1f3pbru8 for a video overview of the project. This project demonstrates what can be accomplished when businesses and nonprofits work together to give back to the community. We are fortunate to have strong partners who share our commitment to K-12 education and environmental sustainability. Joe Bosch, Executive Vice President and Chief Human Resources Officer, DIRECTV I want to thank everyone involved for their efforts. It s a great opportunity to recognize the hard work and dedication of our staff. This will provide a wonderful place to reenergize all of us as we continue to support our students with the most need. Michael Joaquin Terry, Principal, Alfonso B. Perez Career and Transition Center DIRECTV Continues its Partnership with Denver Heart Walk DIRECTV has supported the American Heart Association for more than 10 years, resulting in more than $2 million in donations. DIRECTV employees raised more than $300,000 in funds and registered more than 400 walkers for the 2013 Heart & Stroke Walk in Denver, and nearly 300 for Heart and Stroke walks in other locations across the country. As part of the fundraising efforts, DIRECTV hosted its third annual Charity Golf Tournament in Denver, which raised money for the American Heart Association as well as two educationrelated nonprofits: DSST Public Schools a network of open enrollment STEM charter schools and Sigma Xi, The Scientific Research Society, an international honor society for scientists and engineers. DIRECTV and All Stars Project Outreach that Works Since 2008, DIRECTV s involvement with the All Stars Project has grown immensely from financial donations to mentoring interns and hosting workshops. In 2013, our New York Marketing team launched a pro bono campaign to rebrand All Stars Project and promote their newly opened Scott H. Flamm Center in Newark, N.J. We created a documentary film by Emmy award-winning director Ryan Silbert as well as a new print campaign. In the documentary, All Stars alumni share their stories of how the program has touched and transformed lives. The successful campaign was adopted by All Stars Project s flagship center in New York City. You can see the film by visiting the All Stars Project website www.allstars.org. In addition to raising awareness, it helped attract more donors and youth to the program. ISSUES LOCAL COMMUNITY IMPACT 57
U.S. VOLUNTEERISM continued For 2014, we have bigger plans. Our creative department will host a student workshop led by designers, writers and creative directors. The participating students will get the opportunity to create and star in their own ads. They ll walk away knowing two things. First, what it takes to create an ad. And second, that working in advertising is an exciting career possibility. DIRECTV s Blimp Offers Children a Day of Fun The DIRECTV Blimp team continued its partnership with charities including Sunshine Kids, Starlight Children s Foundation, Boys & Girls Clubs of America and other local charities along the East Coast. The blimp team provides entertainment, education and family activities that inspire children and help families with ill children cope with the pain, fear and isolation of prolonged illnesses. The children are given a tour of the blimp, pose for pictures with the pilot and crew, and go for a memorable ride in the DIRECTV blimp. In 2013, 34 charity days were completed to benefit more than 50 families. A family attends a blimp event through Sunshine Kids, a nonprofit dedicated to children with cancer. Revenue and Marketing Bike Build As part of our Revenue and Marketing department s annual meeting, more than 750 employees from across the country came together in Los Angeles and built more than 140 bikes. The teams decorated each bike with stand-out accessories, including flashy bling kits, colorful lights, cool handlebar grips, attention-getting license plates and more. The bikes were donated in a surprise reveal to kids from a local Boys & Girls Club. ISSUES LOCAL COMMUNITY IMPACT 58
SKILLS-BASED AND PRO BONO VOLUNTEERISM LEVERAGING OUR CORE COMPETENCIES FOR GREAT CAUSES As DIRECTV s employee volunteer program continues to gain momentum, we have increased our focus on skills-based and pro bono volunteerism as a way to amplify our positive impact on the organizations and people we serve. We believe skills-based volunteerism offers a promising opportunity to deliver more value for our company, our employees and for the nonprofit organizations we support. This approach capitalizes on the personal talents, core business skills, experience and education of our employees. Connecting the volunteers with the right skills to the right project at the right time increases our impact and builds stronger relationships between volunteers and the nonprofit sector. Employees find it especially rewarding to leverage their skills and experience in new ways. Providing opportunities for skills-based and pro bono volunteerism is one way we position DIRECTV as an employer of choice, especially for younger talent. Research indicates that millennials, in particular, place higher value on companies that offer service and pro bono, skills-based volunteering opportunities. Those who frequently participate in workplace volunteer activities are more likely to be proud, loyal and satisfied employees. The emphasis on skills-based and pro bono volunteerism is increasingly considered a best practice for community impact and is among the most meaningful and engaging activities for our workforce. A Billion + Change A Billion + Change is the national campaign to transform business culture so that enterprises throughout America will respond to the needs of their communities and unleash the talent and expertise of their people in skills-based and pro bono service. DIRECTV is proud to be one of more than 500 companies that have joined the campaign, which aspires to be the largest commitment of pro bono service in history. DIRECTV s two-year pledge to A Billion + Change was for 3,970 hours of skills-based or pro bono volunteer service during 2012 and 2013, and response from employees exceeded our expectations. By the end of 2013, we reached more than 5,900 hours surpassing our goal by more than 2,000 volunteer hours, or nearly 50 percent. This performance can be attributed in part to the expansion of our high school mentoring program and the launch of skills-based education programs at the elementary, middle and high school levels. Going forward, we look to further expand DIRECTV s participation to help achieve A Billion + Change s goal to reach $5 billion in corporate volunteerism value donated by 2015. High School Mentoring Program In 2013 we completed the second year of the DIRECTV High School Mentoring Program, which reaches students at two underserved high schools in Los Angeles and engages more than 50 employees annually. Students work one-on-one with DIRECTV mentors during bi-weekly meetings focused on college and career planning. The program also features field trips to learn about DIRECTV s technology at our Los Angeles Broadcast Center, as well as careers at DIRECTV s headquarters. There is a clear need for mentoring to supplement classroom teaching and existing school resources. With increasing teacher workloads, high counselor-to-student ratios, and external social and economic factors that can affect student performance, many students need more support as they pursue college and careers. Students from underserved communities are often not exposed to as many college and career options as their more affluent peers. ISSUES LOCAL COMMUNITY IMPACT 59
SKILLS-BASED AND PRO BONO VOLUNTEERISM continued All mentees must apply to participate in the program, and students are matched with employee mentors who share similar interests, who are in the student s career of interest or who attended one of the student s top choice colleges. DIRECTV employee mentors work with student mentees during the spring of the student's junior year and fall of their senior year, which are critical times in their high school career. Volunteer mentors help guide their mentees through the planning process for college via a curriculum custom designed by employee volunteers that aggregates the best available resources related to subjects including extra-curricular involvement, college entrance exams and applications, resume-writing, interviews and financial aid. Often, mentors join mentees on field trips to DIRECTV facilities, where students get hands-on, real-life exposure to career opportunities, requirements and expectations. Mentors have the opportunity to not only impact a student s future and help them create a road map for success, but also to build their own leadership skills and collaborate with colleagues from other departments. We look forward to following the progress of our high school mentees as they progress in their academic and professional careers. Read to a Child Providing another opportunity for skills-based volunteerism, DIRECTV s partnership with Read to a Child recruits volunteers to dedicate one lunch hour per week to read to an elementary school student. The program seeks to bridge the literacy gap that exists for thousands of children and leads to clear disparities in opportunities. Students are unlikely to graduate from high school if they are not moderately skilled readers by the end of third grade. Yet more than four out of five fourth-graders from low-income families are not proficient in reading. 1 Studies have shown that reading aloud to a child is the single most important activity in preparing them for future success in reading, which, in turn, underpins all academic success. Reading aloud helps improve vocabulary, listening comprehension, self-confidence and enthusiasm for reading. Employees at DIRECTV s Washington, D.C., office are long-time participants, and in 2013, the program was expanded to include our corporate headquarters in El Segundo. There, volunteers were matched with first-graders at a local elementary school to whom they read aloud one hour per week throughout the entire school year. Book-by-book and hour-by-hour, these sessions help build the foundation for increased academic success. For the program year that launched in 2013, the students who worked with DIRECTV employees showed increases in self-confidence, increased excitement about reading and improved vocabulary. 1 www.readtoachild.org ISSUES LOCAL COMMUNITY IMPACT 60
SKILLS-BASED AND PRO BONO VOLUNTEERISM continued Middle School Math Tutors Math competency is fundamental to success in all Science Technology, Engineering and Math (STEM) coursework. DIRECTV s commitment to effective STEM education creates a perfect match for another skills-based volunteer initiative our Middle School Math Tutors program. According to data from the National Assessment of Educational Progress, only 30 percent of eighthgraders perform at or above the proficient level in mathematics. 1 Small-group tutoring of students in these grades can be an effective strategy to supplement classroom instruction and drive that performance higher. In Los Angeles, DIRECTV employees stepped forward to become math tutors for underperforming sixthgraders at a local middle school. Volunteers for this year-long program facilitated student-led math groups and problem-solving sessions, served as positive role models and helped prepare students to improve their performance in middle school and beyond. 1 Data from the National Assessment of Educational Progress (NAEP). ISSUES LOCAL COMMUNITY IMPACT 61
SKILLS-BASED AND PRO BONO VOLUNTEERISM continued Bright Star Career Exposure Program DIRECTV s Corporate Citizenship programs encourage young people to aspire to and accomplish great things. Yet we recognize that too many lack the skills and pathways to reach their dreams, while others cannot even imagine a future any brighter than their challenging childhood. We are working to change that. In 2013, DIRECTV piloted a new program to provide intensive and sustained career education to students at Bright Star Secondary Charter Academy, a high-need charter high school in the Los Angeles area. Six participating high school juniors were selected by Bright Star Schools administration for the Career Exposure Program via a competitive application process. Many of the participants came from Spanishspeaking households, and several have parents whose education ended after high school or earlier. Once selected, students were exposed to a wide variety of careers some which require a four-year education and some that require technical education or that could be pursued as a viable career out of high school. Students visited a DIRECTV office twice a week for three hours while receiving class credit for participation. Bright Star staff and the DIRECTV Corporate Citizenship team assisted DIRECTV employees in developing coursework tied to specific skills and objectives. Participants learned both job-specific and practical career skills, including networking, resume creation and interview skills, and also benefited from supplementary instruction at the school campus. Sessions were based at our Rancho Dominguez Home Services site, and students attended field trips to locations including our El Segundo headquarters and our Los Angeles Broadcast Center, among other locations. At the end of 2013, student outcomes validated the benefit of the Career Exposure Program. One hundred percent of participants increased their GPA since joining the program, with an average increase of nearly one full point (on a four-point scale). Counselors and teachers reported increased engagement in classes and increased student confidence. On the heels of this promising start, we plan to scale the program to include more students for upcoming years. Bright Star School instructors will create academic standards-aligned activities to complement DIRECTV instruction. In addition, the school will work with West Los Angeles College to provide students access to classes that build on the careers they learn about at DIRECTV. I am a STEM fan. So I am a nerd at heart. I will be trying to get my Doctorate degree in Physics. I want to get the highest form of education for science as possible. Jonathan Career Exposure Program Participant DIRECTV can be a push toward the path of success. It can help me by getting me ahead of the game, teaching me skills needed for future jobs. To get a clue about what I would like to do in the future. Genesis Career Exposure Program Participant The more knowledge I can have about future careers the better. The majority of people don t always become what they had planned. This program will help me be prepared to overcome the struggles of finding other options in the future. Veronica Career Exposure Program Participant ISSUES LOCAL COMMUNITY IMPACT 62
CONTRIBUTIONS CONTRIBUTING OUR RESOURCES TO GREAT CAUSES IN-KIND DONATIONS DIRECTV System Donation Program Each year many charities turn to businesses to request valuable prizes they can offer as part of their fundraising activities and events. Our DIRECTV System Donation Program is an important part of our in-kind charitable support for the U.S. Under the program, employees can request a DIRECTV System Donation prize package to be used for fundraising efforts by the nonprofit organization of their choice. In 2013 the prize package we made available was valued at more than $2,000 and included a year of free DIRECTV programming and hardware for new and existing customers in the U.S. During 2013, more than 600 packages were donated on behalf of employees to nonprofit organizations. DONATED AIRTIME For DIRECTV, donated airtime is a powerful tool as we work to be a source of positive influence in support of nonprofits and their causes. The Forum DIRECTV Latin America s program, The Forum, serves as an outlet to educate viewers about the mission, accomplishments and needs of nonprofits throughout the region. In 2013, a record 18 NGOs and foundations were provided with more than 120,000 seconds of on-air time to communicate their work in the region time that was valued at more than a half-million dollars. the DIRECTV Latin America also produces original programming as part of its commitment to positively influence awareness of social and environmental needs. In 2013, SKY Brasil produced 10 new microepisodes of Consumo Consciente (Conscious Consumption), featuring local athletes and a celebrity host, that were aired for our SKY Brasil audience. The segments provided tips on eco-friendly living. DIRECTV Latin America also collaborated with Greenpeace to produce and air four new micro-episodes on environmental topics. These messages to teachers, students and subscribers described environmentally friendly actions and behaviors that can positively impact the community and planet. Public Service Announcements In the U.S., DIRECTV supports many of our nonprofit partners by airing their public service announcements (PSAs) at no charge, especially on our ROOT SPORTS networks in Pittsburgh and the Rocky Mountain region. In partnership with our affiliates, we ve donated airtime to support organizations including DonorsChoose.org, KaBOOM! and the Wounded Warrior Project. For 2013, we donated more than $3.1 million in airtime for PSAs in the U.S. ISSUES LOCAL COMMUNITY IMPACT 63
CONTRIBUTIONS continued DIRECTV Gift Matching Our U.S. gift matching program is designed to support employees in their own philanthropic activities. Through the program, the company will match employee and Board member donations to any 501(c)(3) nonprofit organization nationwide, up to $20,000 per person per year. In 2013, more than 1,500 DIRECTV employees and Board members had more than $1.2 million in personal donations matched dollar-for-dollar by DIRECTV. Volunteer Grants EMPLOYEE + COMPANY MATCH = $2.4 MILLION DIRECTV continues to offer a Volunteer Grants program in the U.S. to help amplify the efforts of employees who volunteer for organizations and causes they care deeply about. Through our 2013 Volunteer Grants program, employees who volunteered 25 hours or more at a single nonprofit organization during a calendar year were eligible to request a $250 grant for that organization from DIRECTV. In 2013, we donated nearly $75,000 to 70 organizations through this program. ISSUES LOCAL COMMUNITY IMPACT 64
DISASTER RELIEF HELPING CLOSE TO HOME AND A WORLD AWAY DIRECTV has a tradition of contributing financial resources to relief efforts in the wake of natural disasters, but in 2013, we were presented with a unique opportunity to contribute our time and talents as well. During the summer of 2013, wildfires in Colorado consumed thousands of acres, some of which were within 20 miles of our Castle Rock Broadcast Center in Colorado Springs. As residents were forced to evacuate their homes, officials opened a Disaster Assistance Center to provide resources for fire victims in one convenient, central location. DIRECTV moved quickly to set up a booth at the Center, with employees staffing the booth to provide valuable customer service by answering customers questions, resolving outstanding issues and empathizing with their loss. We were proud to contribute 75 hours of time to this effort. DIRECTV supported customers in the wake of these disasters through a policy that included replacement of damaged equipment at no charge, long-term suspension of accounts for customers who had to leave their homes and waived cancellation fees for those who needed to disconnect service. In addition, DIRECTV matched employee contributions to the American Red Cross Disaster Relief Fund directed toward this wildfire disaster. The Philippines was another area with close connections to DIRECTV that was hit by disaster in 2013. Typhoon Haiyan, one of the most powerful typhoons on record, left widespread devastation in the Philippines and impacted more than 4 million people. Our business partner, Convergys, operates three call centers for DIRECTV in the Philippines. DIRECTV made a corporate donation to Red Cross relief efforts in Convergys name. In addition, we activated the Donate Now button on our Weather Channel app to encourage customers to contribute, and matched all employee donations as well. Finally, in Latin America, DIRECTV responded to devastating floods in Argentina by matching donations to organizations that were helping with relief efforts, and matching donations to our DIRECTV employees who suffered personal losses. ISSUES LOCAL COMMUNITY IMPACT 65
ISSUES ECONOMIC IMPACT BENEFITING STAKEHOLDERS THROUGH FINANCIAL STRENGTH DIRECTV creates economic value by striving to deliver the best video experience a combination of unique and compelling content, technological innovation and industry-leading customer service. We have a proven track record of returning value to our shareholders, and benefiting all stakeholders, through the successful execution of our strategy to: Transform the customer service experience. Advance the entertainment experience both inside and outside the home. Strike a balance between growth and profitability. A comprehensive discussion of this strategy can be found in our 2013 Annual Report and Form 10-K available at http://investor.directv.com/financial-information/annual-reports/default.aspx. TOTAL REVENUES (IN BILLIONS) $31.5 $29.4 $27.2 $6.8 $6.2 $5.1 $24.7 $23.2 $21.9 OPERATING PROFIT BEFORE DEPRECIATION AND AMORITIZATION (IN BILLIONS) $7.0 $7.5 $8.0 U.S. OPERATING PROFIT BEFORE DEPRECIATION AND AMORTIZATION (IN BILLIONS) 5.3 5.7 6.1 2011 2012 2013 United States Latin America 2011 2012 2013 2011 2012 2013 LATIN AMERICAN CONSOLIDATED ADJUSTED OPERATING PROFIT BEFORE DEPRECIATION AND AMORTIZATION* (IN BILLIONS) DILUTED EARNINGS PER SHARE $1.7 $1.9 $2.1 $3.47 $4.58 $5.17 2011 2012 2013 2011 2012 2013 * Excludes the Venezuelan currency devaluation charge of $166 million in 2013. ISSUES ECONOMIC IMPACT 66
SHARE OUR VISION COUNTRY That transmissions from 36,000 km above the Earth are transforming classrooms in Latin America. PROFILES
UNITED STATES LOCAL CORPORATE CITIZENSHIP HIGHLIGHTS Boise, Idaho Record-setting Food Drive and School Improvements Employees from our Boise, Idaho, Customer Care Center donated 8,729 pounds of food to the Idaho Food Bank setting the record for the food bank s largest donation and volunteered to help prepare the donated items to support the school pantry program, which creates satellite food banks at school campuses. Other corporate citizenship activities in Boise included renovating an elementary school playground and outdoor learning garden, and providing backpacks full of school supplies for children participating in Big Brothers Big Sisters and the Women s and Children s Alliance. Cedar Rapids, Iowa Book Drive Supports Cedar Rapids Elementary School Employees from the Cedar Rapids, Iowa, Home Services site facilitated a book drive for Arthur Elementary School. More than 300 books were donated and delivered to the school by DIRECTV employees. COUNTRY PROFILES 68
UNITED STATES continued Denver, Colorado Denver Employees Support K-12 Education As part of DIRECTV s focus on K-12 education, we supported a number of initiatives within the DSST Public Schools, a network of open-enrollment Science, Technology, Engineering and Mathematics (STEM) charter schools within the Denver Public School district. We made a $100,000 donation, made possible by the 2013 DIRECTV Charity Golf Tournament, to fund training for four apprentice STEM teachers. We also supported DSST with employee volunteer support and an event done in partnership with The Weather Channel, where families learned how to create and execute their own emergency plan. Denver Volunteers for Build Bikes for Kids Denver employees supported the community with a number of volunteer bike builds, including one done by 60 DIRECTV Field Services Operations employees to benefit a local Boys & Girls Club, one done to support children at the Florence Crittenton High School Early Learning Center, which also received more than 80 backpacks filled with school supplies from the Denver Field Services Operations team, and another one by more than 50 employees from DIRECTV s Denver Customer Care Center to support local elementary school students. Denver Employees Extend Helping Hands to Local Organizations Our Denver Customer Care Center hosted two onsite events for employees to support Anchor Center for the Blind, a nonprofit that provides early intervention and education to blind and visually impaired children, and Food Bank of the Rockies. Additionally, during our annual holiday party, more than 500 employees worked together to organize more than 600 holiday meals, hygiene kits for homeless youth and families, and baskets filled with toys for rescue animals. Also, DIRECTV s ROOT SPORTS Rocky Mountain office continued its partnerships with the Boys & Girls Clubs of Metro Denver through sponsorship of the local Wilfley branch and an annual baseball clinic for 175 kids featuring Colorado Rockies players and front office personnel. Florence, Alabama Fundraising for St. Jude Children s Research Hospital In July, employees from the Florence, Ala., Home Services site participated in Saddle Up for St. Jude, a volunteer-led equestrian event that raises money for the St. Jude Children s Research Hospital. DIRECTV volunteers assisted the event coordinator throughout the day, and more than $170,000 was raised to help the hospital s fight against childhood cancer and other diseases. Hillsborough, North Carolina DIRECTV Employees Show Support at Relay For Life In April, employees from DIRECTV s Hillsborough, N.C., Home Services site participated in a local Relay For Life event in support of the American Cancer Society. Employees walked throughout the night to show their support for the fight against cancer, and the team raised more than $2,000 for the organization s research to end cancer. COUNTRY PROFILES 69
UNITED STATES continued Houston, Texas Houston Employees Donate Gifts to Homeless Shelter Twenty employees from DIRECTV s Houston Home Services site assisted with the 33rd annual food, clothing and toy drive for Star of Hope an organization dedicated to helping homeless men, women and children by unloading donated toys, gifts and clothes from vehicles. Huntington, West Virginia DIRECTV Supports West Hamlin Elementary in Huntington Employees at the Huntington, W. Va., Customer Care Center supported West Hamlin Elementary with both a school supply drive through which employees donated more than 1,000 items including pencils, notebooks, crayons, markers and scissors and a school beautification volunteer project, where employees partnered with community volunteers to help paint the school and rebuild a walking path around the school that serves the students as well as the community. Huntsville, Alabama Hunstville Employees Support United Way and Local High School Employees from DIRECTV s Huntsville, Ala., Customer Care Center supported their local community through a number of activities including volunteer support for Sci-Quest, a nonprofit that provides hands-on activities to teach children about the different areas of science, and a partnership with S. R. Butler High School. Through this partnership, they hosted a school supply drive and sponsored an education and career fair at which local colleges, universities and armed forces discussed admissions, financial aid and college life, and DIRECTV employees helped students with resume writing, interviewing and job opportunities. In partnership with the Huntsville Home Services site, the Customer Care Center also provided sponsorship and volunteer support for the United Way of Madison County. Jackson, Mississippi Jackson Employees Give Back During the Holiday Season Ten employees from the Jackson, Miss., Home Services site adopted four children during the Salvation Army Angel Tree toy drive, which delivers gifts to children and seniors. The four children received bicycles and other gifts for the holiday season. La Vergne and Tullahoma, Tennessee DIRECTV Supports Children s Hospital In September, DIRECTV employees from La Vergne and Tullahoma, Tenn., joined together to raise nearly $2,500 for the Monroe Carell Jr. Children s Hospital. Los Angeles, California Set-top Box Engineering Team Cleans Local Beach Nearly 90 employees from DIRECTV s engineering organization worked together with nonprofit partner Heal the Bay to beautify Dockweiler Beach in Los Angeles. The group spent more than 250 hours picking up trash and debris. Manteca, California Manteca Employees Volunteer at Chili Cook-off Fundraiser Employees from DIRECTV s Manteca, Calif., Field Operations site contributed 52 hours at the Second Harvest Food Bank during a chili cook-off fundraiser. Volunteers assisted with a silent auction, raffle and clean-up, and sponsored items in the silent auction and raffle. With DIRECTV s help, the food bank raised $16,500. COUNTRY PROFILES 70
UNITED STATES continued Missoula, Montana Creating Opportunities for Kids in Missoula DIRECTV s Missoula, Mont., Customer Care Center partners with the Missoula Education Foundation (MEF) to create educational opportunities that extend beyond the classroom. The MEF student board is a team of high school students sponsored by DIRECTV that recognizes exceptional teachers in the Missoula community. In 2013, the student board recognized three exceptional elementary, middle and high school teachers and awarded three creative grants to various projects and schools. Participating students learn about board leadership while fostering their appreciation of teachers in the community. Missoula employees also volunteered with the All-Abilities Playground Project and supported activities including a baseball game for kids with special needs at which DIRECTV employees were coaches. New York, New York New York Employees Support Local Kids More than 100 employees from DIRECTV s Ad Sales team partnered with nonprofit NY Cares to put together 700 creativity kits and holiday cards for children. The creativity kits which included fun items and treats like activity books and hot cocoa were given to every student at a high-need elementary school as well as kids at a local library as a holiday gift from the team. Oklahoma City, Oklahoma Oklahoma City Employees and Their Families Send Hope In March, the Oklahoma City Field Operations team gathered with their families and loved ones to volunteer with Families Doing Good an organization that coordinates family-friendly volunteer events. As a group, they wrote and decorated cards that were delivered to children with terminal illnesses. Pacoima, California DIRECTV Shows Support for Women s Center Women and families served by the East Los Angeles Women s Center received donations from the Pacoima, Calif., Home Services team for Thanksgiving and Christmas. Since 2011, DIRECTV has supported the center, which provides a safe and nurturing environment to survivors of domestic violence, with volunteer hours and donations. Watch this video to see our 2011 renovation of the East Los Angeles Women s Center as part of our Piedra Papel Tijera (Rock Paper Scissors) volunteer program. Pittsburgh, Pennsylvania ROOT SPORTS Teams Up to Raise Money for Cancer Research ROOT SPORTS Pittsburgh, along with the Pittsburgh Penguins, Mario Lemieux Foundation and Penguins Foundation, hosted the second annual Penguins Charity Auction on ROOTS SPORTS, raising more than $600,000 to support the Mario Lemieux Foundation s cancer research projects and the Pittsburgh Penguins Foundation s youth charities. Red Oak, Iowa Red Oak Employees Volunteer at Local Movie Theater DIRECTV employees from the Tech Service Center in Red Oak, Iowa, volunteered on a monthly basis at a local movie theater operated solely by volunteers. Volunteers sold tickets, worked in the concession stand and cleaned the theater after the movie. This site plans to continue working with the movie theater on a regular basis in the future. COUNTRY PROFILES 71
UNITED STATES continued Ringgold, Georgia Celebrating Christmas with the Boys & Girls Clubs Ringgold, Ga., Home Services site volunteers and their families helped prepare Christmas dinner for families from the Boys & Girls Clubs of Cleveland, Tenn. Volunteers helped prepare food on Christmas Eve, decorated the gymnasium where meals were held, and set up tables and a Christmas tree. With their help, 601 meals were served and 200 meals were delivered to families. Salt Lake City, Utah DIRECTV Employees Volunteer at the Special Olympics Thirty-five employees from the DIRECTV Home Services site in Salt Lake City volunteered at Special Olympics Utah. On the day of the event, employees kept score and cheered for athletes at the bocce ball and basketball games. The employees plan to continue volunteering with Special Olympics Utah. San Diego, California San Diego Employees Provide Typhoon Relief Employees at DIRECTV s San Diego Home Services site showed support to those affected by the typhoon in the Philippines in November 2013. The site extended an invitation to the San Diego Chapter of the American Red Cross to speak and educate the team about how they could help those affected by the disaster, and the group donated $1,100 to the cause with company gift matching. San Jose, California Fulfilling Wishes During the Holiday Season The San Jose Home Services team hosted a holiday gift collection for first-graders in partnership with the United Way Silicon Valley and Family Giving Tree s Holiday Giving Program. Seattle, Washington Supporting the Seattle Community ROOT SPORTS Northwest, which is partially owned by DIRECTV, supported the Seattle community by helping the United Way of King County raise $1.2 million for homeless youth through an All-Star Softball Classic at Safeco Field. ROOT SPORTS Northwest also sponsored the Seattle Mariners radio announcer, Rick Rizzs', annual Toys for Kids event, which raised more than $200,000 and supported the 28th Annual Cystic Fibrosis Mariners Care Golf Tournament. Sparks, Nevada Sharing Holiday Cheer with Children and Veterans Home Service employees in Sparks, Nev., gave back by gathering gifts during the holiday season for patients at the VA hospital and children in the community. Thousand Palms, California Thanksgiving Food Drive for Families in Thousand Palms Employees from Thousand Palms, Calif., organized a food drive to provide Thanksgiving meals to 10 families in need. The team plans to continue volunteering with the local shelter in the upcoming year. COUNTRY PROFILES 72
UNITED STATES continued Tucson, Arizona Tucson Employees Make Strides Against Breast Cancer Employees from the Tucson Field Operations site raised more than $5,600 for the city s 11th annual Making Strides Against Breast Cancer event. On the day of the event, more than 50 DIRECTV employees and their family members joined 8,000 walkers to show their support for those struggling with the disease. The Tucson team plans to continue volunteering at this annual event. Tullahoma, Tennessee Tullahoma Employees Support Local Food Bank Employees at DIRECTV s Tech Service Center in Tullahoma, Tenn., raised funds and awareness for 5Loaves4Kids, a local organization that provides meals for the weekend to children with critical needs. Building Homes for Those in Need In May, Dynamic Dispatch employees from DIRECTV s Tullahoma, Tenn., Home Services helped build a home with Habitat for Humanity. The group plans to continue their work with Habitat for Humanity of McMinnville. Tulsa, Oklahoma Tulsa Employees Provide Tornado Relief and Support for Local School In the wake of a devastating tornado in May 2013 that impacted employees of one of DIRECTV s partner companies in Moore, Okla., DIRECTV employees from both the Customer Care Center and Home Services sites in Tulsa partnered with DIRECTV locations around the country to provide support for impacted families by donating hundreds of pounds of food, personal items and supplies. In September 2013, DIRECTV partnered with The Weather Channel and on-air meterologist Mike Bettes to educate the Tulsa and Broken Arrow communities about tornado preparedness. Other activities to support the Tulsa community included sponsorship of a community event on historic Route 66 to build a community garden for low-income families and a school supplies drive for MacArthur Elementary, which the Tulsa Customer Care Center adopted in 2005 as part of the local adopt-a-school program. Through the supply drive, more than 6,000 items, including notebooks, crayons, glue and more, were donated. Vancouver, Washington DIRECTV Employees Bring Holiday Cheer The Vancouver, Wash., Home Services site coordinated a food drive to provide Thanksgiving dinners for low-income families. Centerpieces were also made by DIRECTV employees to add holiday spirit and décor. Wichita, Kansas Wichita Employees Raise Funds for Open Door Employees from the Home Services site in Wichita, Kan., organized a food drive and collected items for Open Door, a nonprofit organization that provides food, toiletries and clothing to those in poverty. COUNTRY PROFILES 73
LATIN AMERICA A REVIEW OF OUR LOCAL CORPORATE CITIZENSHIP INITIATIVES IN 2013 Across the region, our teams are showcasing DIRECTV s commitment to being a responsible corporate citizen. From transformative volunteer projects through Piedra Papel Tijera, to innovative education programs as part of ESCUELA+, to a strong commitment to our environment and people, our teams are committed to improving the communities where they live and work. Bruce Churchill President, DIRECTV Latin America and New Enterprises The DIRECTV Latin America team applies the same innovation, dedication and passion that has grown our business to their work in the community. I m proud of the commitments that our Latin American operations have made to giving back, and I m pleased to showcase the results of their work in 2013 in this report. Jacopo Bracco President, DIRECTV PanAmericana COUNTRY PROFILES 74
ARGENTINA GENERAL MANAGER MESSAGE At DIRECTV Argentina, we know that by supporting our communities and respecting the environment, not only do we feel better, but we also manage a healthier business in the long term. 2013 was a busy year in every sense. We grew from 2,953 to 3,966 employees. That amounts to a 34 percent growth and means that many people chose to pursue a career at our company. We were also ranked 11th among the best firms to work at in Argentina by Great Place to Work, which proves that we truly believe that our team is our most valued asset. Our commitment to education has grown as well. We have launched an impact analysis for our educational TV program, ESCUELA+, in collaboration with the National Technological University (Universidad Tecnológica Nacional), in order to make the necessary adjustments to keep expanding the project. The goal for 2014 is to double the number of schools we serve. We also continued our sponsorship of Enseñá por Argentina, the local chapter of the Teach for All network, in 2013. Through this organization, we are helping change the lives of many children who need the kind of attention that these very special teachers can give. Through our volunteer program, 2,371 employees devoted 10,403 hours to a wide array of activities from planting trees at natural reserves to classifying donated food, to visiting the elderly at nursing homes, to refurbishing schools. It was a challenge to create the number of activities needed to channel our employees desire to give back. DIRECTV s business has also impacted our society in a number of ways. In 2013, our prepaid product was a key driver of growth. Today, there are 161 percent more customers who have the prepaid product than in 2012. Approximately 70 percent of them are families who have acquired a paid TV system for the first time. It is clear that DIRECTV is offering this market the kind of product they are looking for. We have collaborated with Fundación Banco de Alimentos since 2011, donating volunteer hours to classify, set up and pack food that is later brought to community kitchens and social organizations throughout Argentina. In 2013, 398 DIRECTV volunteers donated 1,592 hours of time to this organization. In 2013, 412 employee volunteers contributed to our program Piedra Papel Tijera. In this photo, DIRECTV volunteers are painting a mural at the support center, Las Dos Palmeras, in Pacheco, Buenos Aires. Every day, more than 150 children from 4 to 14 years old come here for food, play and help with their homework while they are not in school and their parents are working. COUNTRY PROFILES 75
ARGENTINA continued With regard to our value chain, we are working with the social enterprise RedActivos to produce our installation kits. RedActivos finds dignified work for people with intellectual disabilities. Our partnership with RedActivos provides these people with the opportunity to earn a fair wage, while also creating a quality product at a competitive price. To us, this is a true example of a win-win inclusive business initiative. On the environmental side, we have achieved a significant improvement with our L14 set-top box, certified by ENERGY STAR. It uses 29 percent less energy than its predecessor (L12), 43 percent less packing material and 64 percent less fuel for its distribution. We also moved into a new transmission center with more energy-efficient equipment and implemented a new waste classification program at our offices, as well as a smart printing system, which cut paper use by 57 percent. Lastly, our electronic invoicing program grew by 72 percent in 2013 and is saving tons of paper, as well as the fuel needed for distribution. Even though we accomplished so much in 2013, we expect to be even busier in 2014. We hope that our efforts moving forward will continue us on the path to becoming an even more sustainable company. Manuel Abelleyra President, DIRECTV Argentina Since 2013, DIRECTV Argentina has sponsored the School N 32, in Vicente Lopez, Buenos Aires. In this photo, employee volunteers are getting ready to paint and refurbish the school, which serves more than 80 students each day. In 2013, we carried out our annual blood donation campaign in DIRECTV Argentina s corporate offices in Buenos Aires: 82 employees donated more than 65 units of blood. In 2013, DIRECTV Argentina collaborated with Fundación Sagrada Familia s 15 Esperanzas (Hopes) project. Thirty-two employee volunteers helped to build and paint five family homes in the Delfino neighborhood in Pacheco, Tigre. Christmas is a very special time for us. That is why, at DIRECTV Argentina, we manufacture toys for the children in need served by Fundación Sí. 105 employee volunteers took part in this activity. We also organized a Christmas Eve for All work day, during which 625 volunteers prepared 150 Christmas boxes that were later given to low-income families. As part of our Eco DIRECTV program, our employees have been involved in a variety of volunteer activities. One of these involved cleaning the coast in Vicente López, Buenos Aires. 127 DIRECTV employees volunteered on five separate cleaning days in the summer and winter months of 2013. DIRECTV Argentina offers its employees the opportunity to plant trees in different natural reserves as part of our Eco DIRECTV program. In 2013, 62 volunteers worked at the Pilar natural reserve and on the coast of Vicente López, in the province of Buenos Aires. COUNTRY PROFILES 76
ARGENTINA MENSAJE DEL GERENTE GENERAL En DIRECTV Argentina, sabemos que al apoyar a nuestras comunidades y respetar el medioambiente, no solo nos sentimos mejor como personas sino que además manejamos un negocio más sano en el largo plazo. El 2013 nos vio ocupados en todo sentido. Crecimos de 2.953 a 3.966 empleados. Esto significa un 34 por ciento de aumento y que muchas personas eligieron seguir una carrera en la compañía. Además, ocupamos el puesto 11 entre las mejores empresas para trabajar en Argentina según Great Place to Work, lo que demuestra que realmente creemos que nuestro equipo es el activo más valioso. También creció nuestro compromiso con la educación. Lanzamos un análisis de impacto de nuestro programa de televisión educativa, ESCUELA+, junto con la Universidad Tecnológica Nacional, para realizar los ajustes necesarios para seguir expandiendo el proyecto. El objetivo para 2014 es duplicar la cantidad de escuelas que hoy servimos. Por otro lado, estamos orgullosos de ser sponsors de Enseñá por Argentina, el capítulo local de la red Teach for All. A través de ellos, estamos ayudando a cambiar las vidas de muchos chicos que necesitan el tipo de acompañamiento que estos maestros tan especiales pueden darles. A través de nuestro programa de voluntariado, 2.371 empleados destinaron 10.403 horas en una gran diversidad de actividades que van desde plantar árboles en reservas naturales y clasificar alimentos donados hasta visitar a ancianos y reacondicionar escuelas. Fue un desafío el generar la cantidad de actividades necesarias para cubrir las ganas de ayudar de nuestros colaboradores. El negocio de DIRECTV también impactó a nuestra sociedad de diferentes formas. En 2013, el producto prepago fue el motor de nuestro crecimiento y ahora tiene un 161 por ciento más de clientes que en 2012. Aproximadamente el 70 por ciento de ellos son familias que han accedido a un sistema de televisión paga por primera vez. Está claro que DIRECTV ofrece a este mercado el tipo de producto que estaban buscando. Desde 2011, colaboramos con la Fundación Banco de Alimentos donando horas de voluntariado para clasificar, acondicionar y empaquetar alimentos que luego llegan a comedores y organizaciones necesitadas en todo el país. En 2013, 398 voluntarios de DIRECTV Argentina donaron 1.592 horas a esta tarea solidaria. Con respecto a nuestra cadena de valor, estamos trabajando con la empresa social RedActivos para producir nuestros kits de instalación. Sus empleados son personas con discapacidad intelectual, por lo que mientras obtenemos productos de calidad y a precios competitivos, estamos permitiendo que ellos lleven adelante un trabajo digno y que contribuyan a la economía de sus familias. Un verdadero ejemplo de negocio inclusivo. En 2013, nuestro programa Piedra Papel Tijera contó con 412 empleados voluntarios. En esta imagen, podemos ver a los voluntarios pintando un mural en el Centro de Apoyo Las Dos Palmeras, Pacheco, Buenos Aires. Este lugar recibe cada día a más de 150 chicos, de entre cuatro y 14 años, alimentándolos, jugando y haciendo las tareas escolares con ellos mientras no se encuentran en la escuela y sus padres trabajan. COUNTRY PROFILES 77
ARGENTINA continuado En cuanto al medioambiente, un impacto significativo tiene que ver con nuestra caja L14, certificada por ENERGY STAR. Utiliza un 29 por ciento menos de electricidad que su predecesora (L12), un 43 por ciento menos de material de empaque y un 64 por ciento menos de combustible para su distribución. El gran crecimiento en el uso de este modelo durante 2013 generó ahorros en todo tipo de recursos. Otros logros tienen que ver con la mudanza a nuestro nuevo centro de transmisiones, que utiliza equipamiento más eficiente en cuanto a consumo de energía, nuestro nuevo programa de separación de residuos en las oficinas, la mejora continua en la reducción del consumo de agua y electricidad y el sistema inteligente de impresión que redujo el uso de papel en un 57 por ciento. También hemos hecho esfuerzos en facturación electrónica donde nuestra base creció un 72 por ciento, salvando toneladas de papel y el combustible necesario para su distribución. Por todo esto, a pesar de que estuvimos tan ocupados en 2013, esperamos estarlo aún más durante 2014. Ello implicará que estamos en el camino correcto a convertirnos en una compañía todavía más sustentable. Manuel Abelleyra Presidente, DIRECTV Argentina Desde 2013, DIRECTV Argentina apadrina la Escuela N 32, Vicente Lopez, Buenos Aires. Aquí, los empleados voluntarios se pintan y reacondicionan este centro educativo que recibe a más de 80 alumnos diariamente. En 2013, volvimos a realizar nuestra campaña anual de donación de sangre en las oficinas corporativas de DIRECTV Argentina en Buenos Aires: 82 empleados donaron más de 65 unidades de sangre. En 2013, DIRECTV Argentina acompañó el proyecto 15 Esperanzas de la Fundación Sagrada Familia. Así, 32 empleados voluntarios ayudaron a construir y pintar las viviendas de cinco familias del Barrio Delfino en Pacheco, localidad de Tigre. Navidad es una época muy especial para nosotros. Por eso, en DIRECTV Argentina fabricamos juguetes para chicos necesitados en la Fundación Sí. 105 empleados voluntarios participaron de esta actividad. También organizamos una jornada de Nochebuena para Todos; 625 empleados voluntarios lograron armar 150 cajas navideñas que luego fueron entregadas a familias de bajos recursos. Dentro de nuestro programa Eco DIRECTV, involucramos a los empleados a través de diversas acciones de voluntariado. Una de ellas es la limpieza de costas en la localidad de Vicente López, provincia de Buenos Aires. Realizamos cinco jornadas anuales, en verano e invierno, y en 2013 participaron 127 colaboradores. También en el marco de Eco DIRECTV, DIRECTV Argentina ofrece a sus empleados realizar plantaciories de árboles. En 2013, 62 voluntarios participaron de la acción en la Reserva Natural Pilar y en la costa de Vicente López, de la provincia de Buenos Aires. COUNTRY PROFILES 78
SKY BRASIL GENERAL MANAGER MESSAGE Brazil has a population of more than 200 million inhabitants and is the seventh largest economy in the world. The automobile, steel, oil and gas, computer, aircraft and durable goods industries are responsible for more than 30 percent of the Brazilian GDP. Additionally, the worldwide boom in the price of commodities and goods such as beef and soy decisively contributed to the country s growth, which has led it to be among the four global emerging economies Brazil, Russia, India and China the BRIC. As for the pay TV market, there has been significant growth in the purchasing power of Brazilians, reflected in the expansion of the number of subscribers. Although the growth has subsided in recent years, the discovery of large oil and natural gas fields gives the country positive prospects for the future. However, these positive indicators do not obscure the social inequality in Brazil. The country has recently made progress, returning to equality levels seen in 1960, but still ranks among the 12 most unequal in the world. In 2012, 8.7 percent of the population was illiterate, and the quality of the Brazilian educational system still presented poor results. All of this reinforces the importance of Social Responsibility actions for a company like SKY. Our presence in Brazil, in itself, is significant because of the job creation it supplies, the development of a culture of organizational excellence among its thousands of dealers, and the entertainment and cultural enrichment it provides to millions of families. In addition, we added a varied set of Social Responsibility actions, aligned with DIRECTV strategy. In 2013, SKY supported three organizations that are recognized for their work with children and teenagers: the Associação Amigos do Projeto Guri (Guri Program Friends Association), the Associação Pró-Hope Apoio à Criança com Câncer (Pro-Hope Support of the Child with Cancer Association) and the Ação Comunitária do Brasil (Community Action of Brazil). In our third SKY Voluntary Action of 2013, 120 employees volunteered to help the Community Movement Jardim São Joaquim. Their assistance impacted 286 families In our fourth SKY Voluntary Action of 2013, 35 employees volunteered to help the Padre Josimo Tavares Citizen Institute at Jardim Magdalena. In this case, the assistance reached 170 families. COUNTRY PROFILES 79
SKY BRASIL continued We also encouraged our partners and employees to participate in volunteer programs in needy communities on the outskirts of the city of São Paulo, impacting more than 700 families in 2013. Concerned about sustainability and preserving the world we live in, SKY developed initiatives focused on encouraging conscious consumption through campaigns with employees, business partners and a dealer network. We believe Social Responsibility can be intimately intertwined in our business. Over the last four years, for example, SKY has expanded the sponsorship of popular and religious celebrations throughout the most remote locations in the country. As well as a strategy to reinforce our brand with the consumers, it is a way of supporting and preserving the cultural traditions that embody the Brazilian identity. In the same way, our efforts to develop the leadership and talents of our employees is as essential to us as an organization as it is for the country. It is with this broad perspective that we hope to give our best contribution. In 2013, SKY Brasil sought to raise customer awareness around environmental sustainability issues through a new video series hosted by TV anchor Rosana Jatobá, from the Portal Universo Jatobá." The videos were broadcast on the SKY Customer Channel (channel 200) and on the SKY Brasil Social Responsibility website: www.sky.com.br/responsabilidade-social. Luiz Eduardo Baptista da Rocha President, SKY Brasil Our Christmas Action benefited the following institutions: Coexist Every Day, Parque Santa Amélia, Balneário São Francisco Association and Jardim São Joaquim Community Movement. 286 employees participated as volunteers, and 373 familes were impacted by this action. COUNTRY PROFILES 80
SKY BRASIL MENSAGEM DO GERENTE GERAL O Brasil conta com uma população de mais de 200 milhões de habitantes e é a sétima maior economia do planeta. As indústrias de automóveis, aço, petroquímica, computadores, aeronaves e bens de consumo duradouros respondem por mais de 30 por cento do PIB brasileiro. Além disso, o boom mundial no preço das commodities e de mercadorias como carne bovina e soja contribuiu decisivamente para o crescimento do país, que passou a formar entre as quatro economias emergentes globais Brasil, Rússia, Índia e China, o chamado BRIC. No que se refere ao mercado de TV paga, o crescimento do poder de compra dos brasileiros se refletiu na expansão do número de assinantes que. Ainda que o crescimento tenha arrefecido nos anos mais recentes, as descobertas de grandes jazidas de petróleo e gás natural dão ao país uma perspectiva favorável para o futuro. Esses e outros indicadores não ocultam a desigualdade social do Brasil. O país recuperou terreno, voltando aos níveis que apresentava em 1960, mas ainda aparece entre os 12 mais desiguais do mundo. Em 2012, o analfabetismo ainda afetava 8,7 por cento da população e a qualidade do sistema educacional brasileiro ainda apresenta resultados fracos. Tudo isso reforça ainda mais a importância das ações de Responsabilidade Social para uma empresa como a SKY. Por si só, nossa atuação já é significativa pela geração de empregos que proporciona; pelo desenvolvimento de uma cultura empresarial de excelência entre os seus milhares de credenciados e pelo lazer e enriquecimento cultural que proporciona a milhões de famílias. A isso, contudo, somamos um variado conjunto de ações de Responsabilidade Social, em linha com as diretrizes da DIRECTV Group. Por se ver como parte de uma comunidade, em 2013, a SKY apoiou três entidades reconhecidas pelo seu trabalho na área social, junto a crianças e jovens: a Associação Amigos do Projeto Guri, a Associação Pró-Hope Apoio à Criança com Câncer e a Ação Comunitária do Brasil. Em nossa terceira edição da SKY Ação Voluntária de 2013, 120 funcionários da empresa se ofereceram para ajudar o Movimento Comunitário Jardim São Joaquim. 286 famílias foram benefíciadas com essa ação. Na nossa quarta edição da SKY Ação Voluntária de 2013, 35 funcionários da empresa se ofereceram para ajudar o Instituto da Cidadania Padre Josimo Tavares, localizado no Jardim Magdalena. Neste caso, o apoio beneficiou 170 famílias. COUNTRY PROFILES 81
SKY BRASIL contínuo Também incentivou seus colaboradores a participarem de programas de voluntariado em comunidades carentes na periferia da cidade de São Paulo, impactando mais de 700 famílias. Preocupada com a sustentabilidade e em preservar o mundo em que vivemos, a SKY desenvolveu iniciativas voltadas a estimular o consumo consciente, por meio de campanhas junto a funcionários, parceiros de negócio e rede credenciada. A própria empresa, com seu processo de reciclagem de decoders, conseguiu aliar interesse de negócio com um aspecto de preservação do meio ambiente. Nós acreditamos que Responsabilidade Social pode estar intimamente entrelaçada à nossa atividade, independentemente de estarem formalmente assinaladas nessa categoria. Nos últimos quatro anos, por exemplo, a SKY tem expandido o seu patrocínio à festejos populares e religiosos nos mais distantes pontos do país. Tanto quanto uma estratégia de fortalecimento de nossa marca junto a consumidores, trata-se de uma forma de apoiar e preservar as tradições culturais que fazem parte da identidade brasileira. O mesmo vale para as ações de qualificação de nossos colaboradores, desenvolvendo lideranças e talentos, essenciais para nós como empresa, mas também para o país. É com esse olhar amplo que esperamos dar a nossa melhor contribuição. Em 2013, a SKY Brasil procurou sensibilizar os clientes em torno de questões relacionadas com a sustentabilidade ambiental, através de uma nova série de vídeos disponíveis na seção da apresentadora Rosana Jatobá, dentro do "Portal Universo Jatobá. Os vídeos foram transmitidos no Canal do Cliente SKY (canal 200) e também pelo site de Responsabilidade Social da SKY Brasil: www.sky.com.br/ responsabilidade-social/. Luiz Eduardo Baptista da Rocha Presidente, da SKY Brasil Em nossa Ação Natalina a SKY apoiou às seguintes instituições: Casa Dia Coexistir, Associação Parque Santa Amélia e Balneário São Francisco e o Movimento Comunitário do Jardim São Joaquim. 286 funcionários participaram como voluntários e 373 familias foram beneficiadas por esta ação. COUNTRY PROFILES 82
CARIBBEAN GENERAL MANAGER MESSAGE Corporate Social Responsibility is one area that helps distinguish DIRECTV as a business leader in the Caribbean. Our first initiative was completed in February 2011 with assistance to a senior citizens home in Chaguanas, where our main office in Trinidad is located. Several employees participated in the initiative, which involved a nearby school and helping students interact with elder citizens to form an appreciation of those who had come before them. As General Manager, I am particularly proud of the follow-up from our employees, who make periodic visits to the senior citizens home to spend time with the residents, showing that it is not just a one-and-done effort for Generación DIRECTV. For instance, in January 2013, the staff assisted the home further by providing automatic fans, bed linens, clothes and food for the 12 residents. Apart from the formal initiatives that are featured on Piedra Papel Tijera (Rock Paper Scissors), we also participate in other interim activities. What has been even more rewarding is the fact that individual staff members and departments generate ideas and initiatives on their own and seek the assistance of their colleagues. Oftentimes, when staff raise funds among themselves for charitable causes, the company matches their contributions. We are therefore continuing to build on our reputation of being an outstanding corporate citizen, setting the foundation for continuing to build on the pillars of Generación DIRECTV. The success of these initiatives is based on a bottom-up approach and is driven by our employees, while supported by their leaders. This bodes well for the continuing success and development of future Corporate Social Responsibility projects. Bernard Pantin General Manager, DIRECTV Caribbean In January 2013, our staff at DIRECTV Caribbean returned to the Chaguanas Senior Citizens Home, recipient of the Piedra Papel Tijera (Rock Paper Scissors) renovation project in 2011. On this occasion, they provided automatic fans, bed linens, clothes and food for the 12 residents. In July 2013, DIRECTV Caribbean and its Pro League Football Team, DIRECTV WConnection, made a donation to The Serenity Place Empowerment Centre. This institution was established in 1996 as a residential care center for women affected by substance abuse, homelessness, domestic violence and HIV/AIDS, and to date has assisted hundreds of women in need through rehabilitative care and therapy. COUNTRY PROFILES 83
CARIBBEAN continued In August 2013, the Retention department received a call from Mrs. Karen Phillip indicating that she had to cancel her DIRECTV subscription, as her daughter passed away suddenly and Mrs. Phillip was now the sole caregiver for her five grandchildren. Mrs. Phillip expressed that her grandchildren were in urgent need of school supplies. The Retention department raised funds and purchased school supplies that were given to the grandchildren. In April 2013, our employees raised funds that were matched by the company to support the parents of a six-year-old girl who required open-heart surgery in the United States. In November 2013, our staff from the Finance department led a company-wide initiative, inviting DIRECTV Caribbean employees to donate gifts over a onemonth period. More than 150 gifts were collected and donated to children from three orphanages. COUNTRY PROFILES 84
CHILE GENERAL MANAGER MESSAGE For DIRECTV Chile, 2013 was marked by the creation of our Social Responsibility department, whose aim is to systematize, communicate and consolidate the actions we have been carrying out in the fields of responsible marketing, ethics, work-life quality and the community. Our first activity as a unit was the creation of a Strategic CSR Plan for DIRECTV Chile. This process entailed concept definition, a competitor actions survey, a compilation of the past actions carried out by the Chile operation, definition of spheres of influence, and actions to be executed in 2013. Of all the programs that have been implemented, our employee health and wellness program, Construir desde las Personas, deserves special attention. Through this program, we made great strides in providing our employees with the best benefits in 2013. The inclusion of each of these benefits is based on specific market analyses and on our employees needs. Currently, we focus on the so-called emotional wage, i.e., the benefits aimed at balancing family life and work. Other very popular benefits implemented during 2013 seek to enhance our employees health. These are, among others, Plan Vida Sana, an alliance with Sodexo; the gym membership reimbursement; and the delivery of healthy snacks to workstations. This is not the only meaningful way in which we have worked together with our employees. In 2013 we donated 1,250 volunteer hours to three actions in the context of our corporate volunteering program Piedra Papel Tijera. These actions were carried out at educational centers in disadvantaged areas of the country. We believe that besides helping those who need it the most, this program creates unique opportunities for teambuilding. Moreover, in 2013 we began implementing the first social responsibility actions for our sales channel, Agentes Comunales, a program that brings our service to geographical areas that can only access a satellite broadcast and offers work opportunities for the local community. In 2013 we carried out three Piedra Papel Tijera actions. These activities brought together 125 employee volunteers to benefit the San Vicente Lo Barnechea Home (pictured), the Tierra de Niños kindergarten and the Carmen Bajo school. In the last few years, DIRECTV Chile has experienced strong growth, which has brought us to incorporate community efforts that help to further integrate us into the market. These efforts will be key in sustaining long-term success. Julio López General Manager, DIRECTV Chile Thanks to DIRECTV Chile s talent search Directo a la Fama, we were able to raise funds that allowed us to make several donations to nonprofit institutions, such as the Santa Catalina Home (pictured), the San Francisco de Asís Girls Home and the El Bosque healthcare center. COUNTRY PROFILES 85
CHILE continued Together with ESCUELA+, we prepared a communication plan for internal reports that have allowed us to communicate the program among all collaborators in Chile. A total of 206 schools were incorporated in 2013 in the areas of Valparaíso, O Higgins, Coquimbo and Maule. We have reached 1.200 trained teachers and 10.000 potential student beneficiaries. We have made significant efforts to communicate our progress in CSR to internal and external stakeholders. In 2013 we updated the Generación DIRECTV Chile blog, created an intranet site, started a newsletter for clients, a socialcast and other communications outlets. We officially launched our program The Forum and invited several organizations to take part. We donated more than 15,000 air seconds to UNICEF to disseminate their child abuse prevention and membership campaigns. We carried out the first carbon footprint survey in our corporate buildings in order to quantify our energy and fuel consumption and air trips, and we designed a strategic plan for our environmental program Eco DIRECTV with initiatives for 2013 and 2014. In the context of CINEMA+, we have worked toward launching a scholarship contest for university students, and we have scheduled the launch of our pilot program MEDIABUS. COUNTRY PROFILES 86
CHILE MENSAJE DEL GERENTE GENERAL Para DIRECTV Chile, 2013 estuvo marcado por la creación de nuestra Gerencia de Responsabilidad Social, cuyo fin es sistematizar, difundir y consolidar las acciones que veníamos realizando hace años en las áreas de marketing responsable, ética, calidad de vida laboral y comunidad. Nuestra primera actividad como área fue la creación y redacción de un Plan Estratégico de RSE para DIRECTV Chile que incluyera la definición de conceptos, levantamiento de las acciones de la competencia, recopilación de actividades realizadas por la operación de Chile, fijación de áreas de influencia y acciones a concretar el 2013. Entre los programas desarrollados, merecen especial atención el valor de Construir desde las Personas, que busca el bienestar y la felicidad de nuestros colaboradores. Por eso, en el último año hemos avanzado enormemente en cuanto a los beneficios entregados a todos ellos. La incorporación de cada uno de estos beneficios responde a estudios específicos de mercado y de las necesidades de nuestros colaboradores. Actualmente, nuestro foco está puesto en el llamado salario emocional, que son aquellos beneficios que buscan equilibrar la vida familiar con la laboral. Otros beneficios de gran aceptación implementados durante el 2013 apuntan a mejorar la calidad de la salud de nuestros colaboradores, y entre éstos podemos destacar el Plan Vida Sana en alianza con Sodexo, el rembolso por gimnasio y la entrega de snacks saludables en el puesto de trabajo. Y no sólo en este ámbito trabajamos con nuestros colaboradores. En 2013, donamos 1.250 horas de trabajo de voluntariado en tres acciones de nuestro programa de voluntariado corporativo Piedra Papel Tijera. Estas acciones se realizaron en centros educativos de zonas carenciadas del país, y reconocemos que este programa, además de ayudar a los que más lo necesitan, crea también instancias únicas e irrepetibles de cofradía para nuestro equipo. Durante 2013, realizamos tres acciones de Piedra Papel Tijera. Las actividades convocaron a 125 empleados voluntarios y los beneficiados fueron el Hogar San Vicente Lo Barnechea (en la foto), el Jardín Tierra de Niños y la escuela Carmen Bajo. Por otro lado, en 2013 comenzamos a implementar las primeras acciones de responsabilidad social para nuestro canal de venta, Agentes Comunales, programa que acerca nuestro servicio a zonas que geográficamente sólo pueden recibir señal satelital y entrega oportunidades de trabajo a personas oriundas de la comunidad. Gracias a la actividad de búsqueda de talentos en DIRECTV Chile Directo a la Fama, pudimos reunir fondos que nos permitieron realizar diversas donaciones de implementos a instituciones sin fines de lucro como el Hogar Santa Catalina (en la foto), el Hogar de Niñas San Francisco de Asís y el consultorio de salud de El Bosque. COUNTRY PROFILES 87
CHILE continuado En estos años, DIRECTV Chile ha tenido un importante crecimiento, lo que nos ha llevado a incorporar áreas que nos permiten posicionarnos de forma integral en el mercado. Consideramos que la responsabilidad de conducción de estas áreas es esencial para lograr un éxito sostenible en el tiempo con respeto de nuestra misión y valores declarados. Julio López Gerente General, DIRECTV Chile Junto a ESCUELA+, desarrollamos un plan de comunicaciones para Chile que concluyó en la creación de boletines internos que nos permitieron difundir el programa a todos los colaboradores de Chile. Las escuelas incorporadas en 2013 fueron 206 en las regiones de Valparaíso, O Higgins, Coquimbo y Maule. Así, sumamos 1.200 profesores capacitados y 10.000 alumnos potenciales beneficiarios. Realizamos una ardua tarea de difusión del área que incluyó la actualización de Blog Generación DIRECTV Chile, y la creación y redacción de notas para la Intranet, directv.cl, newsletter para clientes, socialcast y notas de RSE en medios externos. Desarrollamos una presentación oficial de nuestro programa The Forum con el fin de invitar a diversas organizaciones a participar en él y donamos más de 15.000 segundos al aire a UNICEF para difundir sus campañas de prevención del abuso infantil y de captación de socios. Realizamos el primer levantamiento en nuestros edificios corporativos para la Medición de la Huella de Carbono en consumos relativos a electricidad, gasolina y viajes aéreos, y creamos un plan estratégico para nuestro programa ambiental Eco DIRECTV con acciones para el 2013 y 2014. En el marco de Cinema Plus, trabajamos en la presentación del concurso de becas para estudiantes universitarios y coordinamos el lanzamiento del programa piloto MEDIABUS. COUNTRY PROFILES 88
COLOMBIA GENERAL MANAGER MESSAGE Over the past year, we made significant progress toward our goal of becoming the number-one subscription-based television company in Colombia. We were recognized for our high standards of quality, products and services, and thanks to the trust shown by our customers, we achieved 27 percent growth in 2013. As allies in Colombia s growth, we are committed to the communities in the regions where we do business. Through the Piedra Papel Tijera (Rock Paper Scissors) volunteer program, our employees helped vulnerable communities from Cali, Medellín and Bogotá. We increased the number of schools participating in the ESCUELA+ program from 85 to 580, establishing alliances with the National Education Ministry, the U.S. Embassy, the hydroelectric power company CHIVOR and Fundación Pies Descalzos. And thanks to The Forum, we donated airtime for advertising spots to 18 NGOs and foundations. Under Eco DIRECTV, our environmental protection program, we implemented sustainability efforts, including the installation of recycling stations that recovered 14.8 tons of recyclable materials. In the same vein, we also launched environmental awareness campaigns, reduced our energy consumption by 6 percent, saved 249,500 sheets of paper and achieved notable water and waste reductions. Lastly, we minimized the impact of our set-top boxes, sending electronic waste to specialized companies. Taking into account our employees and their families development and well-being, in 2013 we implemented the benefit plan called Más Para Ti (More For You), with programs for employees' health, quality of life and education, and created a healthcare office within the company. We also modified the work environment to leverage the results of the business, implementing training programs to develop skills. Finally, always with our customers in mind, thanks to the Continuous Improvement program, we achieved a 14 percent reduction in calls, and we strive to keep our satisfaction and first-call resolution indices at 92 percent and 93 percent, respectively. Within the framework of the ESCUELA+ program, we signed a cooperation agreement with the National Education Ministry to work in alignment with the Educational Innovation National System, involving the departmental and municipal Education Secretariats. We estimate that by 2017, we will benefit 1,800 educational institutions throughout the country. We will continue to bring our CSR strategies closer to our value chain in 2014, with the goal of achieving community-friendly growth, aligned with Colombia s development. Roque Lombardo President, DIRECTV Colombia The U.S. Embassy in Colombia joined us to support the implementation of ESCUELA+. Through this program, we will support the teaching of English in vulnerable communities across the country through our content, which includes educational channels in English, training guides, lesson-planning and study guides. COUNTRY PROFILES 89
COLOMBIA continued Our Piedra Papel Tijera program supported the Líderes Constructores de Paz organization, which serves vulnerable children and youth. One hundred employee volunteers from DIRECTV Colombia and Telecenter Panamericana helped repair the façade, infrastructure, flooring, ceiling, doors, windows, paint, sidewalk and outer garden. We worked with Fundación Deportiva Jackson Martínez, Fundación Juguemos en el Bosque, Fundación Rompemallas and Fundación Club Activos on the Copa EuroAmericana (Euro-American Cup) organized by DIRECTV. These organizations promote sports in vulnerable communities as a means to help prevent drug addiction and crime. Through these partners, we selected children who attended the training sessions of Porto F.C. (Portugal) and Sevilla F.C. (Spain), and they took part in the protocol ceremonies of official matches. COUNTRY PROFILES 90
COLOMBIA MENSAJE DEL GERENTE GENERAL Durante 2013, avanzamos con el firme propósito de ser la empresa número uno de televisión por suscripción, reconocida por nuestros altos estándares de calidad, producto y servicio. Gracias a la confianza depositada por nuestros suscriptores, logramos un crecimiento del 27 por ciento. Como aliados al crecimiento del país, estamos comprometidos con las comunidades de las regiones donde operamos. A través del programa de voluntariado Piedra Papel Tijera, nuestros colaboradores ayudaron a comunidades vulnerables en Cali, Medellín y Bogotá. Con ESCUELA+, tuvimos un crecimiento de 85 a 580 escuelas, generando alianzas con el Ministerio de Educación Nacional, la Embajada de Estados Unidos, la hidroeléctrica CHIVOR y la Fundación Pies Descalzos. Gracias a The Forum, donamos espacio para spots de 18 ONG y fundaciones. En el marco de Eco DIRECTV, nuestro programa de cuidado medioambiental, implementamos iniciativas de sostenibilidad, instalando puntos de reciclaje y recogiendo 14,8 toneladas de material reutilizable. También implementamos campañas de concientización, cambios en el funcionamiento del aire acondicionado, modernización de equipos y cambio de luminarias para reducir el consumo de energía en un 6 por ciento. Adicionalmente, ahorramos 249.500 hojas de papel, complementado con reducciones en agua y residuos; además, minimizamos los impactos de nuestros decodificadores destinando los residuos electrónicos a empresas especializadas. Pensando en el desarrollo y bienestar de nuestros colaboradores y sus familias, en 2013 lanzamos el plan de beneficios Más Para Ti (con diferenciales en salud, calidad de vida y educación), habilitamos un consultorio médico empresarial y gestionamos el ambiente laboral para apalancar los resultados del negocio, implementando programas de formación para el desarrollo de competencias. Y pensando siempre en nuestros clientes, gracias al Programa de Mejora Continua logramos una reducción de llamadas en 14 por ciento, y nos esforzamos por mantener en 92 por ciento y 93 por ciento los índices de satisfacción y resolución a la primera llamada. En el marco del programa ESCUELA+, firmamos un convenio de cooperación con el Ministerio de Educación Nacional para trabajar alineados al Sistema Nacional de Innovación Educativa, involucrando a las Secretarías de Educación departamentales y municipales. Se estima que en el 2017 beneficiaremos a 1.800 instituciones educativas de todo el país. En este orden de ideas y de acuerdo a los resultados alcanzados, en 2014 acercaremos las estrategias de Responsabilidad Social a nuestra cadena de valor, con el fin de acompañar el accionar del negocio, en pro de un crecimiento amigable con nuestras comunidades y alineado al desarrollo del país. Roque Lombardo Presidente, DIRECTV Colombia La Embajada de los Estados Unidos en Colombia se unió a nosotros para apoyar la implementación de ESCUELA+. Así, colaboraremos con la enseñanza del idioma inglés a poblaciones vulnerables en todo el país, a través de nuestros contenidos que incluyen canales educativos en inglés, guías de capacitación, planificación de clases y guías de estudio. COUNTRY PROFILES 91
COLOMBIA continuado Nuestra acción de voluntariado de Piedra Papel Tijera benefició a la organización Líderes Constructores de Paz, dedicada a acompañar a niños y jóvenes en condición de vulnerabilidad. En esta actividad, participaron 100 colaboradores de DIRECTV Colombia y Telecenter Panamericana, quienes realizaron una obra civil que implicó varios arreglos en la infraestructura de fachada, pisos, cielo falso, puertas, ventanas, pintura, adecuación de andén y jardín exterior. En el marco de la Copa Euroamericana organizada por DIRECTV, trabajamos con la Fundación Deportiva Jackson Martínez, la Fundación Juguemos en el Bosque, la Fundación Rompemallas y a la Fundación Club Activos. Estas organizaciones promueven el deporte en comunidades de escasos recursos como un vehículo de prevención en contra de la drogadicción y la delincuencia. A través de ellas, se seleccionaron a los niños que pudieron vivir el entrenamiento de los equipos Porto F.C. (Portugal) y Sevilla F.C. (España) y además hicieron parte los actos de protocolo en los partidos disputados. COUNTRY PROFILES 92
ECUADOR GENERAL MANAGER MESSAGE Corporate Social Responsibility is a fundamental pillar for DIRECTV Ecuador. In 2013 we focused on the following Generación DIRECTV initiatives: ESCUELA+, Piedra Papel Tijera, The Forum and Eco DIRECTV. In 2012 we launched ESCUELA+ with 21 schools in the city of Quito. This year, we devoted ourselves to scaling up this initiative by launching agreements with Fundación Fe y Alegría and Enseña Ecuador. These discussions will lead to the expansion of ESCUELA+ into more than 100 new schools in 2014. We are proud to be one of the countries with the greatest participation in the region in Piedra Papel Tijera (Rock Paper Scissors): 80 percent of our employees are currently engaged in this volunteer program. In 2013 we restored a nursery school in the city of Cuenca, with the support of not only our employees, but our dealers and suppliers, who also participated. The Forum provides space in our ACCESS magazine for foundations and NGOs to showcase themselves before our national audience so they can raise more support. During 2013 we had the opportunity to collaborate with different foundations such as Un Techo Para Mi Pais, INFA and Fe y Alegría. Our support of local foundations will continue in 2014. We have embraced several Eco DIRECTV projects in Ecuador. Our main office, located in north Quito, is a sustainable building designed based on bio-climactic architecture concepts, enabling savings in lighting, energy consumption of equipment and water. As a result, it was awarded by the Metropolitan Council of Quito as a building that contributes to the sustainable management of the city. We are also the only subscription-based TV company in the country to report its carbon footprint, which enables us to be more aware of our environmental impact, and in turn, reduce it. We increased our staff by 32.3 percent in 2013, providing more jobs with competitive wages in the market. Given that increase, and with the aim of offering optimal work conditions, we moved to new offices with ergonomic and healthy spaces, meeting the highest occupational safety standards. The San Agustín de Callo Nursery School, located in the Parroquia de Turi in the city of Cuenca, houses 50 vulnerable children. Through Piedra Papel Tijera, DIRECTV Ecuador, together with its employees and industry dealers, provided the center with lavatories, beds, chairs, tables, and educational and entertainment materials for the children. DIRECTV Ecuador has grown significantly in the last few years, thanks to our employees commitment to our customers and the communities we serve. We are certain that 2014 will present us with more inspiring challenges and opportunities. José Daniel Gómez President, DIRECTV Ecuador In 2013 we trained 942 teachers from 21 Educational Centers in the Quito Municipality in the use and methodology of ESCUELA+. This tool benefitted 20,387 children from the city of Quito. COUNTRY PROFILES 93
ECUADOR continued In the second half of 2013, a dialogue was started with two well-known organizations to ensure the growth of ESCUELA+ in the country during 2014. Fundación Fe y Alegría, with 50 years of work in Ecuador, has 75 education centers at the national level, which provide instruction to approximately 28,000 low-income students. Organización Enseña Ecuador has 275 young professors and leaders chosen from among the best universities in the country to teach in eight centers within the rural areas of the Pichincha province. The Santa Fe Corporate Tower, the building housing DIRECTV Ecuador s headquarters, has received LEED certification. DIRECTV Ecuador offices strive to optimize resources and use materials that have the lowest possible impact on the environment and reduce CO2 emissions as much as possible. In December 2013, within the context of the holidays, DIRECTV employees visited the various locations chosen for the Piedra Papel Tijera program in the last few years, to give them a Christmas celebration and follow up with our CSR efforts in those places. COUNTRY PROFILES 94
ECUADOR MENSAJE DEL GERENTE GENERAL Generación DIRECTV y las diferentes iniciativas que están dentro de nuestra plataforma de Responsabilidad Social constituyen un pilar fundamental para DIRECTV Ecuador. Luego de lanzar ESCUELA+ en 2012, durante 2013 nos dedicamos a expandir esta iniciativa, logrando iniciar diálogos y acuerdos con la Fundación Fe y Alegría y Enseña Ecuador que representarán la expansión a más de cien centros educativos a nivel nacional en 2014. Estamos orgullosos de ser uno de los países de mayor participación de la región en el programa Piedra Papel Tijera: 80 por ciento de nuestros colaboradores han sido voluntarios durante las acciones solidarias. En 2013, readecuamos una guardería de la ciudad de Cuenca y en esta iniciativa no solo se involucraron nuestros colaboradores, sino también dealers y proveedores que trabajan con DIRECTV Ecuador. Además, en el marco de The Forum, colaboramos con Fundación UN TECHO, INFA y Fundación Fe y Alegría. Eco DIRECTV en Ecuador engloba varios proyectos. El edificio matriz de DIRECTV, ubicado al norte de la ciudad de Quito, es un edificio sustentable que incorpora conceptos de arquitectura bioclimática al ahorrar en iluminación, en energía en la utilización de equipos y en agua. Por estos atributos, fue premiado por el Concejo Metropolitano de Quito. También somos la única empresa de TV paga en el país que comenzó a reportar su impacto en la Huella de Carbono, lo que nos ayuda a ser conscientes de nuestro impacto medioambiental a fin de disminuirlo. Por otro lado, en 2013 incrementamos el 32,3 por ciento de nuestra dotación, brindando mayor cantidad de plazas laborales con salarios competitivos en el mercado. Debido a este incremento y con el objetivo de brindar condiciones óptimas de trabajo, nos trasladamos a nuevas oficinas que cuentan con espacios ergonómicos y saludables, cumpliendo así los más altos estándares de seguridad ocupacional. La Guardería San Agustín de Callo, ubicada en la Parroquia de Turi de la ciudad de Cuenca, alberga a 50 niños de escasos recursos. A través de Piedra Papel Tijera, DIRECTV Ecuador, junto con su personal y dealers del sector, dotaron al centro de baterías sanitarias, camas, sillas, mesas y material didáctico y de esparcimiento para los niños. DIRECTV Ecuador ha tenido un importante crecimiento durante los últimos años y esto se debe principalmente al constante trabajo de sus colaboradores, además de su activa participación y colaboración con las diferentes áreas y causas de carácter social en las que la compañía está presente. Estamos seguros de que el 2014 nos depara mayores retos y proyectos. José Daniel Gómez Presidente, DIRECTV Ecuador Durante 2013, capacitamos a 942 profesores de 21 Centros Educativos del Municipio de Quito para el uso adecuado y metodología de ESCUELA+. Esta herramienta benefició a 20.387 niños de la ciudad de Quito. COUNTRY PROFILES 95
ECUADOR continuado En el último semestre del 2013, se iniciaron diálogos con dos reconocidas organizaciones a fin de garantizar el crecimiento de ESCUELA+ en el país durante el 2014. La Fundación Fe y Alegría, con 50 años en Ecuador, cuenta con 75 centros educativos a nivel nacional que instruyen a cerca de 28.000 alumnos de escasos recursos. La Organización Enseña Ecuador cuenta con 275 profesores jóvenes y líderes que han sido seleccionados de las mejores universidades del país para educar en ocho centros educativos de las zonas rurales de la provincia de Pichincha. La Torre Corporativa Santa Fe, edificio en el que opera la oficina matriz de DIRECTV Ecuador, es un edificio con certificación LEED (Líder en Eficiencia y Diseño Sostenible, por sus siglas en inglés). Las oficinas de DIRECTV Ecuador se preocupan por la optimización recursos y la utilización de materiales nobles que generen el menor impacto posible al ambiente y la menor emisión posible de CO2 a la atmosfera. En diciembre de 2013 y con motivo de los festejos de Navidad, los colaboradores de DIRECTV visitaron las distintas locaciones en las que se ha realizado Piedra Papel Tijera durante los últimos años, con el fin de brindarles un agasajo navideño y de dar continuidad a nuestras acciones de Responsabilidad Social en esos lugares puntuales. COUNTRY PROFILES 96
PERÚ PRESIDENT'S MESSAGE We worked hard in 2013 in the hopes of turning DIRECTV into the number one subscription-based television provider in Perú. As a result, we doubled our customer base and have been recognized for our high standards for quality, products and services. We are also committed to the communities we operate in and the growth of our strategic partners to contribute to Perú s development. With that sustainable ideal in mind, we carried out several efforts in 2013. Through our Piedra Papel Tijera (Rock Paper Scissors) volunteer program, 126 of our employees helped the Nursing Home Tablada de Lurín in Villa Maria del Triunfo, Lima, managed by Father Omar. This institution provides care to impoverished youth and senior citizens. Our employees helped restore floors, windows and bedrooms, and created a garden, greatly improving residents quality of life. This year, we signed an agreement with the National Ministry of Education that will enable us to bring our ESCUELA+ program to more schools in Perú. We estimate that by 2015 we will have implemented ESCUELA+ in 1,000 schools throughout the country, and more than 600 teachers will have received VOD (on demand) training prepared by the Ministry of Education. Through our Eco DIRECTV initiative, we implemented sustainability efforts in 2013, such as replacing incandescent bulbs with energy-saving ones, which reduced our energy consumption. Moreover, we continued recycling our paper and started collecting information on our carbon footprint, such as our consumption of gas, power and water. In 2013 we paid special attention to the health and wellness of our employees and their families. We encouraged healthy eating options, flu vaccines and established a Mother s Room at our office. We continue to offer a robust insurance package that reinforces our commitment to the health and wellness of our employees and their families. 126 DIRECTV Perú employees volunteered to help the Tablada de Lurín Nursing Home, in Villa Maria del Triunfo, Lima, as part of our Piedra Papel Tijera program. Employees restored floors, windows and bedrooms, and a garden was created as well. In February 2013 we implemented ESCUELA+, DIRECTV Latin America s educational TV program. The program s launch in Perú was carried out in partnership with the Ministry of Education, and 20 Lima schools were chosen for the pilot. By mid-2013, educational television was added in 13 schools in the city of Chiclayo, where an official launch was celebrated with the Education Ministry. COUNTRY PROFILES 97
PERÚ continued Moreover, we have carried out several activities to promote training, integration and recognition of our employees accomplishments. In 2013, 39 employees were promoted, five of them to leadership positions. We have also continued to prioritize diversity in our hiring decisions. For these reasons, we achieved a 77 percent employee satisfaction rating in the Great Place to Work survey. Lastly, we continued to work to provide excellent services to our customers in 2013. We have developed a deep understanding of what our customers truly value, enabling us to exceed the post-payment churn target. We have managed to map all processes with an impact on customer experience. We are now a regional role model for Cooltura (our program focused on the quality of our customer service), having exported to the rest of the region our root-cause identification methodology to handle dissatisfaction, and we have the best performance in executing the Close Loop effort. We look forward to further integrating our CSR efforts into our value chain in 2014 so they can continue contributing to the growth of DIRECTV, the communities where we do business and also to the development of Perú. To support the launch of ESCUELA+ in Perú, 450 teachers from across the country were invited to a technical training hosted by the Ministry of Education in February 2013. Teachers from Huampanú and Chaclacayo took part in this technological support training, aimed at helping them learn how to apply the program s technology and methodology in schools where ESCUELA+ was implemented. Orlando Parodi President, DIRECTV Perú DIRECTV Perú is a Great Place to Work, and we reinforce this with various activities throughout the year to engage employees on national holidays, birthdays and other special occasions. Pictured: Halloween party with employees and their children. COUNTRY PROFILES 98
PERÚ MENSAJE DEL PRESIDENTE Hemos trabajado duro durante 2013 con el especial objetivo de convertir a DIRECTV Perú en la empresa número uno de televisión paga, siendo reconocida por nuestro alto estándar de calidad, productos y servicios. Por eso, nos enorgullece constatar que, en los últimos tres años, hemos doblado la base de nuestros clientes. Pero nuestro compromiso también está con las comunidades del país en donde venimos operando, y en el crecimiento de nuestros socios estratégicos para contruibur así con el desarrollo de Perú. Con esta mirada sostenible, en 2013 llevamos adelante diversas iniciativas. A través de nuestro programa de voluntariado Piedra Papel Tijera, 126 empleados de DIRECTV Perú ayudaron a la Casa Hogar Tablada de Lurín en Villa Maria del Triunfo, Lima, administrada por el Padre Omar. Esta casa-hogar recibe niños, adolescentes y ancianos de escasos recursos económicos, y la acción de DIRECTV Perú contribuyó a construir nuevos pisos, ventanas y dormitorios, y también a implementar un jardín, todo con la finalidad de mejorar la calidad de vida de estas personas. Gracias a ESCUELA+, hemos logrado un acuerdo con del Ministerio de Educación. Este acuerdo de cooperación que hemos firmado nos permitirá trabajar de manera conjunta para continuar llevando nuestro programa educativo y de innovación a cava vez más establecimientos, y estimamos que para 2015 llegaremos a implementar ESCUELA+ en mil establecimientos del país. En el marco de Eco DIRECTV, en 2013 implementamos iniciativas de sostenibilidad como los cambios de focos normales por otros de bajo consumo, lo que nos permitió reducir nuestro consumo energía. Asimismo, continuamos reciclando nuestro papel y comenzamos a recolectar información acerca de nuestro impacto en la Huella de Carbono, como consumo de gasolina, electricidad y agua. En el marco del programa de voluntariado Piedra Papel Tijera, 126 empleados de DIRECTV Perú se convirtieron en voluntarios de la acción para ayudar a la Casa Hogar Tablada de Lurín, en Villa Maria del Triunfo, Lima, administrada por el Padre Omar. Allí, los empleados se dedicaron a reacondicionar pisos, ventanas y dormitorios, y también se creó un jardín. Pensando en nuestros empleados y considerando su salud y bienestar, en 2013 promovimos el consumo de frutas diarias y los masajes para reducir el stress. Además, continuamos implementando el consultorio médico, la sala de lactancia, los chequeos médicos obligatorios y las vacunas para la gripe, beneficios que se suman al seguro de vida y el seguro médico cubierto al 100 por ciento a todos los empleados y dependientes directos de la compañía desde su primer día de trabajo. En febrero de 2013, implementamos ESCUELA+, nuestro programa de televisión educativa. El lanzamiento del programa en Perú se realizó en coordinación con el Ministerio de Educación, y para el proyecto piloto fueron escogidas 20 escuelas de Lima. A mediados del 2013, 13 escuelas con televisión educativa se sumaron en la ciudad de Chiclayo, donde se realizó una inauguración oficial con el Ministerio de Educación. COUNTRY PROFILES 99
PERÚ continuado Asimismo, hemos realizado diversas actividades para promover la capacitación, la integración y el reconocimiento de los méritos laborales. En 2013, 39 empleados fueron promovidos, de los cuales cinco pasaron a ocupar puestos de liderazgo. De igual manera, hemos seguido priorizando la diversidad a la hora de tomar decisiones en la contratación de personal. Por todo esto, en la encuesta Great Place to Work recibimos un 77 por ciento de satisfacción interna. Por último, en 2013 también continuamos trabajando para brindar un servicio de excelencia a nuestros clientes. Hemos superado la meta de churn postpago comprendiendo lo que realmente los clientes valoran y qué tan satisfechos están con su experiencia. Se ha conseguido el mapeo completo de los procesos con impacto en la experiencia del cliente. Hemos logrado ser referente regional de Cooltura (nuestro programa de calidad en atención al cliente), habiendo exportado la metodología de identificación de causa raíz a la región para el manejo de la insatisfacción, y somos el primer país con la mejor ejecución de la iniciativa Close Loop. También en febrero de 2013, participamos en un evento de capacitación organizado por el Ministerio de Educación en donde docentes con conocimiento de informática de todo el país se reúnen para ser capacitados en tecnología. Participaron de esta capacitación 450 docentes de apoyo tecnológico de Huampaní, Chaclacayo, para aprender a aplicar la tecnología y metodología del programa en las escuelas en las que se implementó ESCUELA+. Con todos estos resultados obtenidos, durante el 2014 seguiremos utilizando las estrategias de Responsabilidad Social en toda nuestra cadena de valor, participando en el crecimiento del negocio, de las comunidades que nos rodean y alineados con el desarrollo del país. Orlando Parodi Presidente, DIRECTV Perú Para favorecer la integración y el bienestar de nuestro equipo de trabajo, realizamos diversas actividades como eventos para fechas especiales: Reunión de Integración, fiestas patrias, celebración de cumpleaños mensuales, Halloween con los hijos de los empleados y la Fiesta de Navidad con todos los colaboradores. El objetivo: generar vínculos de compañerismo entre áreas y fidelización de nuestros colaboradores hacia la compañía. COUNTRY PROFILES 100
PUERTO RICO GENERAL MANAGER MESSAGE Corporate Citizenship is one of the key pillars of DIRECTV Puerto Rico s business. Through Generación DIRECTV, we strive to reach the most vulnerable communities to provide volunteer support and improve education. It is with great pride that 45 percent of our employees took part in these programs in 2013. In 2007, ESCUELA+ started in Puerto Rico as a pilot education program, with 19 public schools located throughout the island, and in 2012 we expanded the program to include the Correctional Department of Puerto Rico to benefit the inmates of the correctional system. Beyond the technological innovation that ESCUELA+ brings to the classrooms, we have seen the joy it brings to teachers. For that reason, in 2013, we extended the program to the Study Centers created for drop-outs, thus encouraging them to finish their higher education. Today, ESCUELA+ impacts more than 2,500 people in Puerto Rico. Piedra Papel Tijera (Rock Paper Scissors) is our volunteer program, through which we carry out restoration activities at institutions in need. In 2013, DIRECTV Puerto Rico employees and volunteers restored a library used by 35 young women suffering from domestic violence who live under the state s care. Our employees, as well as our dealers and providers, collaborated in this effort. Through our program called The Forum, we had the opportunity to support the Puerto Rico Olympic Committee. We donated 2,200 seconds of airtime to this organization in 2013, helping them to raise funds and awareness to develop future Olympic athletes. Since our country is an island, concern for our coastlines and the environment is prevalent in Puerto Rican society. This concern has helped to fuel our efforts in what is now known as Eco DIRECTV Puerto Rico. In 2013, one impassioned employee led a beach cleanup where more than 300 pounds of debris were collected. We were also proud that our new office in the Hato Rey banking district was certified by the Environmental Protection Agency as a sustainable building. Lastly, we implemented paper recycling stations in our offices, and in 2013 we recycled 5,292 pounds of paper, saving more than 63 trees. The Niñas de Cupey Nursing Home, located in San Juan, is the home of 35 girls who have suffered from domestic violence. With a Piedra Papel Tijera action, DIRECTV Puerto Rico, together with our employees and industry dealers, updated the library the girls use to study and also to receive therapy and psychological support. The library now has modern spaces, adequate desks and chairs, and a recreational space. COUNTRY PROFILES 101
PUERTO RICO continued We recognize that our efforts to be socially and environmentally responsible have a positive impact on our business. For example, in 2013, DIRECTV was selected as one of the best companies to work for in Puerto Rico. Our commitment to human capital shows in a program by which employees can nominate nonprofit organizations to be sponsored by the company. In the last few years, this program has supported more than 20 small nonprofits that work in various fields, such as the arts, sports, education and others. By supporting causes close to the everyday realities of our staff, DIRECTV boosts their loyalty to the company. In 2013, DIRECTV Puerto Rico had a major impact on the regional Generación DIRECTV program. We look forward to furthering our CSR efforts in 2014 and developing new opportunities for our employees and stakeholders to participate in. Thelma López General Manager, DIRECTV Puerto Rico Located in an important banking district, the building that houses the DIRECTV Puerto Rico headquarters has been certified by the Environmental Protection Agency as a sustainable building. The new DIRECTV Puerto Rico offices focus on optimizing resources, using eco-friendly materials and striving to emit as little CO2 into the atmosphere as possible. In 2013 we continued implementing the ESCUELA+ program in the Puerto Rico Correctional Department, to benefit the inmates. COUNTRY PROFILES 102
PUERTO RICO MENSAJE DEL GERENTE GENERAL En cumplimiento con nuestros objetivos como ciudadano corporativo, DIRECTV Puerto Rico incluye su programa responsabilidad social empresarial, Generación DIRECTV, como un baluarte importante de la compañía. A través de sus diferentes iniciativas, logramos llegar a las comunidades más necesitadas y brindar apoyo, educación y sana recreación. Al concluir el 2013 y con un gran corazón, el 45 por ciento de nuestros empleados ha sido partícipe de los programas. ESCUELA+ se inició en Puerto Rico como un programa educativo piloto en el año 2007, con 19 escuelas públicas del país localizadas alrededor de toda la isla, y en 2012 decidimos expandir el programa al Departamento de Corrección de Puerto Rico, para el beneficio de los confinados del sistema correccional. Más allá de la innovación tecnológica que lleva ESCUELA+ al salón de clases, hemos palpado la alegría que trae al maestro esta herramienta. Por eso, en 2013 integramos al programa a los Centros de Estudios que apoyan al joven desertor escolar, promoviendo así que éstos culminen su grado de escuela superior. Hoy, ESCUELA+ en Puerto Rico impacta a más de 2.500 personas. Piedra Papel Tijera es nuestro programa de voluntariado que consiste en la recuperación y rehabilitación de espacios que necesitan de ayuda. En 2013, voluntarios y colaboradores de DIRECTV Puerto Rico reacondicionaron una biblioteca que forma parte de la vida de 35 jovencitas que viven bajo el cuidado del Estado luego de ser removidas de sus hogares por consecuencia del maltrato. Al igual que en otras iniciativas, no solo se involucraron nuestros voluntarios, sino también dealers y proveedores que trabajan con nosotros. Por otro lado, a través de nuestro programa The Forum tuvimos la oportunidad de colaborar con el Comité Olímpico de Puerto Rico, apoyándolo en la recaudación de fondos para el desarrollo de futuros olímpicos, y otorgamos 2.200 segundos al aire. El Hogar Niñas de Cupey, ubicado en San Juan, alberga a 35 niñas removida de sus hogares por abuso o maltrato. Con una acción de Piedra Papel Tijera, DIRECTV Puerto Rico, junto con su personal y dealers del sector, actualizaron la biblioteca que sirve a las niñas, además de estudiar, para recibir sus terapias y ayuda sicológica. La biblioteca ahora cuenta con espacios modernos, mesas y sillas apropiadas, además de un espacio recreativo. COUNTRY PROFILES 103
PUERTO RICO continuado Debido a que nuestro país es una isla, la preocupación por nuestras costas es natural en nuestra sociedad puertorriqueña, y es así como nacieron los primeros esfuerzos de lo que hoy forma Eco DIRECTV Puerto Rico. Del corazón de uno de nuestros empleados voluntarios con la idea por realizar una limpieza de playa y en conjunto a entes municipales, se colectaron 300 libras de escombros un esfuerzo al que se unieron familiares de los empleados. Asimismo, nos llena de orgullo que la nueva sede de DIRECTV Puerto Rico ubicada en la zona bancaria de Hato Rey sea un edificio sustentable que cuenta con la certificación de la Agencia Federal de Protección Ambiental (EPA, por sus siglas en inglés). Además, contamos con puntos de reciclaje de papel en las oficinas logrando alcanzar 5.292 libras de papel triturado correctamente. Con esta acción, salvamos 63 árboles en el 2013. Sabemos que cada una de estas iniciativas también impacta favorablemente en nuestra propia compañía. Por eso, en 2013 DIRECTV Puerto Rico fue seleccionada como una de las mejores empresas para trabajar del país. Nuestro compromiso con el capital humano se refleja a través de un programa en que el empleado puede proponer diferentes entidades sin fines de lucro para que la compañía las auspicie. A través de este programa, en los pasados años se han beneficiado más de una veintena de pequeñas entidades sin fines de lucro que abarcan campos tan variados como las artes, deportes, educación y otras. Lo que es aún más imprtante, son entidades cercanas al día a día de nuestros empleados, lo cual incrementa el compromiso de cada uno de ellos con la empresa. Durante 2013, DIRECTV Puerto Rico ha tenido un importante impacto en el programa de Generación DIRECTV, desarrollando oportunidades adicionales para el programa, el voluntariado y los colaboradores, quienes han sido inclusivos con sus ideas haciéndose participes en ellas. Estamos seguros que el 2014 nos brindará mayores retos y proyectos. Thelma López Gerente General, DIRECTV Puerto Rico Ubicado en una importante zona bancaria, el edificio en el que opera la oficina matriz de DIRECTV Puerto Rico es un edificio bajo la certificación de EPA (Enviromental Protection Agency, por sus siglas en inglés). Las nuevas oficinas de DIRECTV Puerto Rico se preocupan por la optimización de recursos, utilización de materiales nobles que generen el menor impacto posible al ambiente y la menor emisión posible de CO2 a la atmósfera. En 2013, continuamos con la implementación de ESCUELA+ en el Departamento de Corrección de Puerto Rico, para el beneficio de los confinados del sistema correccional. COUNTRY PROFILES 104
URUGUAY GENERAL MANAGER MESSAGE Our goal is to be an organization that delights its customers, takes great care of its shareholders interests, develops its people and works hand-in-hand with its suppliers. While all of those things would make us a good organization, we would still be incomplete. In order to become a complete company, we must also assume responsibility for the impact we have on our community. We recognize that DIRECTV Uruguay can be a vehicle for social change and that each of our employees and partners plays a significant role in our efforts to be a responsible company. In 2013 we carried out two projects through our volunteer program called Piedra Papel Tijera (Rock Paper Scissors). Fifty-five percent of our employees took part in these activities. Moreover, we launched our in-house DIRECTV Te Cambia la Vida ( DIRECTV Changes Your Life ) program, which brings needed donations to the most remote areas in our country based on the employees' suggestions. We were excited to launch ESCUELA+ in Uruguay in 2013, following a two-year engagement with the Pre-School and Primary Education Council. Our pilot of ESCUELA+, which provides educational TV programming to students and training for teachers, was implemented in 48 rural schools, impacting a total of 1,400 children, in Canelones, San José and Maldonado. Environmental protection was another priority for DIRECTV Uruguay in 2013. As part of our Eco DIRECTV initiative, we implemented a recycling program in our offices for all the materials we use. We also worked with environmental NGO, Logros, to launch Bosque DIRECTV (DIRECTV Forest) an effort that gave us the opportunity to plant 50 species of native trees at the Rural Education Center in San Jacinto, Canelones. Our Piedra Papel Tijera projects benefited the Caritas Lindas Nursery School (with 50 children from the La Tablada neighborhood, pictured) and the Cotolengo Don Orione Nursing Home (serving 260 people in the Sayago neighborhood). We were also proud to be included on the Great Place to Work ranking, positioning us as one of the best companies to work for in Uruguay. Given our growth, we were judged in the companies with over 150 employees category, which includes the most important firms in the country, and we achieved an 80 percent satisfaction index among our employees. COUNTRY PROFILES 105
URUGUAY continued We are inspired to keep growing our efforts in Corporate Social Responsibility, focusing not only on what, but also on how and why. Our regional programs are and will continue to be a major driver, complemented by local efforts. How do we do it? With passion, innovative ideas, having fun and offering our personal time. Why do we do it? Because we want to continue building a sustainable organization, where everyone comes to work with a smile in the morning and leaves with a smile at the end of the day. Because we share the pride of belonging to something that, besides contributing to our well-being and development, changes lives. Pablo Etcheverry General Manager, DIRECTV Uruguay In 2013 we launched our DIRECTV Te Cambia la Vida program. On four occasions we provided toys, clothing, food and school supplies for various institutions in need throughout in the country. In June 2013, we launched the ESCUELA+ pilot, our educational TV program. The chosen institution was the 48th School, in Piedra Sola, Canelones. COUNTRY PROFILES 106
URUGUAY MENSAJE DEL GERENTE GENERAL En DIRECTV Uruguay, queremos ser una organización que se desvele por deleitar a nuestros clientes, que cuide cada día los intereses de nuestros accionistas, que contribuya al desarrollo de nuestra gente y que trabaje codo a codo con nuestros proveedores. Pero, aunque con este concepto seríamos una buena organización, seguiríamos estando incompletos. Para ser una empresa completa, también debemos asumir la responsabilidad que tenemos frente a nuestra comunidad. Cada uno de nosotros puede contribuir con otros, sin importar qué rol ocupe. DIRECTV Uruguay es también un vehículo para esto. Durante 2013, realizamos dos acciones de nuestro programa de voluntariado corporativo Piedra Papel Tijera. El 55 por ciento de nuestros colaboradores participaron de estas acciones. Asimismo, lanzamos nuestro programa interno DIRECTV Te Cambia la Vida, que consiste en llevar donaciones a las zonas más remotas de nuestro país a partir de la sugerencia de los propios colaboradores. Por otro lado, tras dos años de relacionamiento con el Consejo de Educación Inicial y Primaria (CEIP), en 2013 firmamos un acuerdo para empezar a implementar en Uruguay ESCUELA+. Se trata de un plan piloto inicial en 48 escuelas rurales, a la que concurren en total unos 1.400 niños, las cuales están distribuidas en los departamentos de Canelones, San José y Maldonado. Como parte de nuestro programa Eco DIRECTV, implementamos en nuestras oficinas un esquema de reciclado de todos los materiales utilizados. Además, en coordinación con la ONG local Logros, lanzamos el Bosque DIRECTV, una iniciativa que en 2013 nos permitió plantar 50 especies de árboles nativos en el Centro Educativo Rural ubicado en San Jacinto, Canelones; el desafío a futuro es mantener y ampliar esta plantación. También en 2013, ingresamos nuevamente en el ranking Great Place to Work, posicionándonos como una de las mejores empresas para trabajar en Uruguay. Dado nuestro crecimiento, esta vez participamos en la categoría de empresas con más de 150 empleados, integrado por las compañías más importantes del país, y logramos un índice de satisfacción interna del 80 por ciento. Nuestras acciones de Piedra Papel Tijera beneficiaron a la Guardería Caritas Lindas, (que atiende 50 niños del barrio La Tablada; en la foto) y El Hogar Cotolengo Don Orione (que atiende 260 personas en el barrio Sayago). El 55 por ciento de nuestros colaboradores participó como voluntarios. COUNTRY PROFILES 107
URUGUAY continuado Nuestra contribución para con los demás ha ido creciendo a lo largo del tiempo y continuaremos trabajando para ser aún mejores. Y lo haremos cuidando no solamente el qué, sino también el cómo y el por qué. En esta línea, nuestros programas regionales son y serán un fuertísimo motor que se complementa con iniciativas locales. Cómo lo hacemos? Con pasión, con ideas innovadoras, divirtiéndonos, haciéndolo de modo totalmente voluntario y poniendo a disposición nuestro tiempo personal. Por qué lo hacemos? Porque queremos continuar construyendo una organización que perdure en el tiempo, a la cual todos lleguemos contentos por la mañana y nos retiremos contentos al final del día. Porque perseguimos ese orgullo de pertenecer a algo que, además de contribuir con nuestro bienestar y desarrollo, cambia vidas. En 2013, nuestro programa DIRECTV Te Cambia la Vida se puso en práctica en cuatro oportunidades en las que aportamos juguetes, abrigo, alimentos y útiles escolares a diversas instituciones del país. Pablo Etcheverry Gerente General, DIRECTV Uruguay En junio de 2013, realizamos la primera instalación de ESCUELA+, nuestro programa de televisión educativa. La institución beneficiada fue la Escuela N 48, ubicada en la localidad Piedra Sola, Canelones. COUNTRY PROFILES 108
VENEZUELA PRESIDENT'S MESSAGE Our goal is for DIRECTV to be a leader in the field of Corporate Social Responsibility in Venezuela. It is important to us that DIRECTV leave a positive mark on the development of future generations in Venezuela, which will be made possible thanks to the commitment of our employees. Through Generación DIRECTV, we have committed to giving back in the community and protecting the environment. This initiative unites the technology and service of DIRECTV as a leader in subscription-based TV with volunteer efforts of our employees and collaborators to generate positive change that is sustainable over time. Within the context of Eco DIRECTV, in 2013 we aimed to make better use of resources and reduce our environmental impact. We offered our employees the opportunity to do volunteer work, cleaning up coastal areas under the guidance of Fundación La Tortuga. In addition, through an alliance with Nat Geo, we launched an in-house awareness campaign on saving water, power and paper. Through our corporate volunteer program, Piedra Papel Tijera (Rock Paper Scissors), we carried out four activities in 2013, benefitting schools and sports fields throughout the country. These efforts were made possible by 190 employee volunteers. Through our FORUM program, we donated airtime to nonprofit organizations, such as Fundación UN TECHO, Fundahígado and Senosayuda. Sports are a high-priority area for us. For that reason, we aim to supplement each of our sports sponsorships with CSR actions. In 2013 we supplied monetary support and sports equipment to the children taking part in the DIRECTV Venezuela Championships. Sports clinics and autograph-signing activities were also carried out, and we invited nonprofit organizations that serve children to enjoy these activities. One of the Piedra Papel Tijera actions was carried out in the Modelo del Sur Bolivarian Special Education Institute. This institution, created under the People s Power Education Ministry, provides comprehensive educational attention to children and youth with Cognitive Integration Disorder or intellectual disability. More than 70 DIRECTV Venezuela employees participated in a Piedra Papel Tijera project at the Dr. Luis María Castillo Sports Initiation Center, a space designed to develop future high-performance athletes. This institution serves 800 athletes from various communities in the area, such as Juan de Villegas, Barrio Unión, Los Crepúsculos and Concepción, among others. COUNTRY PROFILES 109
VENEZUELA continued Along the same lines, we encourage physical activity and wellness programs for our employees. Our Recreándonos para Prevenir (Recreation for Prevention) project offered sports activities in 2013, such as softball, volleyball, soccer, bowling and basketball, in which 800 employees took part. Moreover, 300 employees enjoyed our domino tournaments, 500 employees and their families came to our movie/debate sessions, and 2,400 employees and their relatives used our running and walking circuits. Lastly, 1,360 people attended our DIRECTV Venezuela Compartir Familiar (Family Sharing Day). With these results, and with 2014 in mind, we will continue to strive to transform DIRECTV Venezuela into a leading company in terms of Corporate Social Responsibility. Alexander Elorriaga Executive President, DIRECTV Venezuela In partnership with Fundación TECHO, 105 employees volunteered to build three homes for deprived families in the Colinas de Charallave sector. Ninety employees volunteered to recover a basketball court in Naiguatá, for the DIRECTV Venezuela 3-on-3 tournament. During the DIRECTV Basketball Cup, with the Caracas Cocodrilos team, a donation was made to Fundación El Albor to support the restoration of an institution in the Boqueroncito neighborhood in Catia. COUNTRY PROFILES 110
VENEZUELA MENSAJE DEL PRESIDENTE Nuestro objetivo es convertir a DIRECTV Venezuela en la empresa líder en Responsabilidad Social Empresarial del país. Para nosotros es muy importante dejar una huella positiva en la formación de las futuras generaciones, y esto es gracias al compromiso que hemos obtenido de nuestros colaboradores de DIRECTV Venezuela. A través de Generación DIRECTV, la compañía se ha comprometido a contribuir con la comunidad y el medio ambiente. La iniciativa cuenta tanto con la tecnología y el servicio de DIRECTV como empresa líder en televisión por suscripción, así como con las acciones del voluntariado llevadas a cabo por los empleados y colaboradores para generar en la empresa y en la sociedad un cambio positivo y sustentable en el tiempo. En el marco de Eco DIRECTV, en 2013 relizamos diferentes implementaciones y mejoras en pos de cuidar los recursos y minimizar nuestro impacto medioambiental. Como parte de las actividades de celebración en el mes de las playas, ofrecimos a nuestros empleados la posibilidad de ser voluntarios en una jornada de saneamiento costero bajo la guía de Fundación La Tortuga. Además, a través de una alianza con Nat Geo, logramos la activación de una campaña de conciencia interna sobre el ahorro de agua, luz y papel. A través de nuestro programa de voluntariado corporativo Piedra Papel Tijera, realizamos en 2013 cuatro actividades en las que se recuperaron escuelas y canchas deportivas en diversas zonas del país. Para estas acciones, contamos con la colaboración de 190 colaboradores voluntarios. Gracias a nuestro programa The Forum, donamos espacios al aire para organizaciones sin fines de lucro como Fundación UN TECHO, Fundahigado y Senosayuda. El deporte es un área de mucho interés para nosotros. Por eso, es nuestro objetivo complementar cada uno de nuestros patrocinios deportivos con acciones de RSE. En 2013, gestionamos el aporte tanto monetario como de equipos deportivos a los niños que participaron en las Copas deportivas de DIRECTV Venezuela. También se realizaron Clínicas deportivas y firmas de autógrafos, e invitamos a instituciones de niños sin fines de lucro a disfrutar de estas actividades. Una de las acciones de Piedra Papel Tijera fue llevada a cabo en el Instituto de Educación Especial Bolivariano Modelo del Sur. Esta institución, adscrita al Ministerio del Poder Popular para la Educación, brinda atención educativa integral a niños, niñas y jóvenes con la condición de Compromiso de Integración Cognitiva o discapacidad intelectual. En alianza con la Fundación TECHO, 105 empleados se ofrecieron como voluntarios para construir tres viviendas para familias carenciadas en el sector Colinas de Charallave. COUNTRY PROFILES 111
VENEZUELA continuado De la misma manera, promovimos la actividad física y el bienestar puertas adentro, entre nuestros colaboradores. Nuestro proyecto Recreándonos Para Prevenir les ofreció en 2013 actividades deportivas como softball, vóleibol, fútbol, bowling y básquetbol, de las cuales participaron 800 empleados. Asimismo, contamos con la participación de 300 empleados en nuestras jornadas de dominó, otros 500 empleados y sus familias asistieron a los cine-foros, y 2.400 de ellos y sus seres queridos se anotaron en los circuitos de carrera y caminata. Por último, 1.360 personas dijeron presente en el Compartir Familiar de DIRECTV Venezuela. Con estos resultados y en vistas a 2014, continuaremos esforzándonos para convertir a DIRECTV Venezuela en la empresa líder en Responsabilidad Social Empresarial del país. Alexander Elorriaga Presidente Ejecutivo, DIRECTV Venezuela También como parte de Piedra Papel Tijera, más de 70 empleados voluntarios de DIRECTV Venezuela fueron al Centro de Iniciación Deportiva Dr. Luis María Castillo, un espacio dedicado la formación de semilleros para futuros atletas de alto rendimiento. Esta institución beneficia a diversas comunidades cercanas como Juan de Villegas, Barrio Unión, Los Crepúsculos, Concepción, entre otros. Actualmente se benefician de las instalaciones unos 800 atletas. 90 empleados voluntarios participaron en la recuperación de una cancha deportiva en Naiguatá, para la realización del Torneo 3 pa 3 de DIRECTV Venezuela. Durante la Copa DIRECTV de baloncesto con el equipo Cocodrilos de Caracas, se realizó la entrega de un aporte a Fundación El Albor como apoyo a la remodelación de una institución en el Barrio Boqueroncito en Catia. COUNTRY PROFILES 112
SHARE OUR VISION Global That better thinking inside the box can reduce GHG emissions. Reporting Initiative (GRI)
GRI: We have prepared this report in accordance with GRI 4.0 Core guidelines. Only issues and aspects deemed material to DIRECTV are reported in this index. GLOBAL STANDARD DISCLOSURES Profile Full Partial Not Reported Disclosure Description Reference (page no.)/response G4-1 Statement from the most senior decision-maker of the Letter (3) organization (such as CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and the organization s strategy for addressing sustainability G4-3 Name of the organization Front Cover G4-4 Primary brands, products, and services About DIRECTV (6) G4-5 Location of the organization s headquarters About DIRECTV (6) G4-6 Number of countries where the organization operates, About DIRECTV (6) and names of countries where either the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report G4-7 Nature of ownership and legal form Governance (11), 10K (2) G4-8 Markets served About DIRECTV (6) G4-9 Scale of the organization About DIRECTV (6), Economic Impact (66), 10K (2) G4-10 a. Total number of employees by employment contract and gender b. Total number of permanent employees by employment type and gender c. Total workforce by employees and supervised workers and by gender d. Total workforce by region and gender e. Self-employed, or individuals other than employees or supervised workers, including employees and supervised employees of contractors f. Significant variations in employment numbers (such as seasonal variations in employment in the tourism or agricultural industries) G4-11 Percentage of total employees covered by collective bargaining agreements % Full-time employees: 97% % Part-time employees: 3% Gender breakdown of full-time employees Gender breakdown of part-time employees Female: 29% Male: 71% Female: 61% Male: 39% People managers: 13% Individual contributors: 87% Gender breakdown of people managers Gender breakdown of individual contributors Female: 28% Male: 72% Female: 31% Male: 69% Employee age breakdown Note: All G4-10 information for U.S. only Under 30 years old: 27% 30-50 years old: 61% 51 years old or older: 13% U.S. only: There are no DIRECTV employees covered by collective bargaining agreements G4-12 Organization s supply chain description Supplier Sustainability (38) G4-13 Significant changes during the reporting period regarding the organization s size, structure, ownership, or its supply chain There were no significant changes during the reporting period G4-14 Whether and how the precautionary approach or principle is addressed by the organization G4-15 Externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or which it endorses Though DIRECTV has a robust corporate risk management function, the precautionary approach or principle is not applied due to the nature of our business CDP Change the Equation Electronics Industry Citizenship Coalition (EICC) Supplier Code of Conduct Global Reporting Initiative Framework The Greenhouse Gas Protocol GRI 114
GRI continued GLOBAL STANDARD DISCLOSURES Full Partial Not Reported Profile Disclosure Description Reference (page no.)/response G4-16 Memberships of associations (such as industry associations) and national or international advocacy organizations G4-17 Entities included in the organization s consolidated financial statements or equivalent documents G4-18 Process for defining the report content and the Aspect Boundaries G4-19 All material Aspects identified in the process for defining report content Boston College Center for Corporate Citizenship Business Roundtable Cal-Plug CEB Corporate Leadership Council Change the Equation Committee Encouraging Corporate Philanthropy Consumer Electronics Association ENERGY STAR Partner Environmental Defense Fund (EDF), Climate Corps Satellite Broadcasting and Communications Association (SBCA) Solar Decathlon sponsor Southern California Grantmakers Sustainability Accounting Standards Board (SASB) Industry Working Group Sustainable Brands Sustainable Electronics Recycling International (SERI), R2 Leaders Signatory to the Voluntary Agreement for Ongoing Improvement to the Energy Efficiency of Set-Top Boxes Reporting Practices (9), 10K (2) Reporting Practices (9) Reporting Practices (9) GRI 115
GRI continued GLOBAL STANDARD DISCLOSURES Full Partial Not Reported Profile Disclosure Description Reference (page no.)/response G4-20 For each material Aspect, the Aspect Boundary within the organization The following table outlines DIRECTV's material issues along with the corresponding GRI G4 Material Aspect, the issue's materiality within or outside of our organization, and the geographic boundary in which we report on the issue. DIRECTV Material Issue Compliance (11) Customer Experience (39) Diversity & Equal Opportunity (41) Economic Impact (66) Education (14) G4 Material Aspect Environmental Compliance Product & Service Labeling Customer Privacy Diversity & Equal Opportunity Economic Performance Indirect Economic Performance Local Communities Material Within the Organization Material Outside of the Organization Electronic Waste (34) Effluents and Waste X X Community Development (53) Energy & GHG Emissions (26) Ethical Business Practices (11) Government Relations & Public Policy (11) Health & Safety (52) Labor/Management Relations (47) Local Communities Energy Emissions Anti-Corruption Public Policy X X Occupational Health and Safety Labor /Management Relations Product Impacts (33) Materials X X Waste Management (34) Workforce Development (49) Effluents and Waste Training and Education Geographic Boundary X X Global X X DIRECTV U.S. & DIRECTV Latin America X X DIRECTV U.S. X X X X X X X X X X X X DIRECTV U.S. & DIRECTV Latin America DIRECTV U.S. & DIRECTV Latin America DIRECTV U.S. & DIRECTV Latin America DIRECTV U.S. & DIRECTV Latin America DIRECTV U.S. & DIRECTV Latin America DIRECTV U.S. & DIRECTV Latin America DIRECTV U.S. & DIRECTV Latin America DIRECTV U.S. & DIRECTV Latin America DIRECTV U.S. & DIRECTV Latin America DIRECTV U.S. & DIRECTV Latin America DIRECTV U.S. & DIRECTV Latin America DIRECTV U.S. & DIRECTV Latin America GRI 116
GRI continued GLOBAL STANDARD DISCLOSURES Profile Full Partial Not Reported Disclosure Description Reference (page no.)/response G4-21 For each material Aspect, the Aspect Boundary outside Reporting Practices (9), GRI G4-20 (113) the organization G4-22 Effect of any restatements of information provided in Reporting Practices (9), Environmental Stewardship (22) previous reports, and the reasons for such restatements G4-23 Significant changes from previous reporting periods in Reporting Practices (9) the Scope and Aspect Boundaries G4-24 List of stakeholder groups engaged by the organization CSR Strategy (7), Stakeholder Engagement (8) G4-25 Basis for identification and selection of stakeholders CSR Strategy (7), Stakeholder Engagement (8) with whom to engage G4-26 Organization s approach to stakeholder engagement CSR Strategy (7), Stakeholder Engagement (8) G4-27 Key topics and concerns that have been raised through CSR Strategy (7), Stakeholder Engagement (8) stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting G4-28 Reporting period (such as fiscal or calendar year) for Reporting Practices (9) information provided G4-29 Date of most recent previous report (if any) Reporting Practices (9) G4-30 Reporting cycle (such as annual, biennial) Reporting Practices (9) G4-31 Contact point for questions regarding the report or its Contact Us: CorporateCitizenship@directv.com contents G4-32 The in accordance option the organization has chosen Reporting Practices (9) G4-33 Organization s policy and current practice with regard Reporting Practices (9) to seeking external assurance for the report G4-34 Governance structure of the organization, including Governance (11), 10K (129), Proxy (15), FAQ (121) committees of the highest governance body G4-39 Report whether the Chair of the highest governance Approach (5), Proxy (15), Annual Report (IBC) body is also an executive officer (and, if so, his or her function within the organization s management and the reasons for this arrangement) G4-47 Frequency of the highest governance body s review At least once per year to the Board of Directors of economic, environmental and social impacts, risks, and opportunities G4-56 Organization s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics G4-57 Internal and external mechanisms for seeking advice on ethical and lawful behavior, and matters related to organizational integrity, such as helplines or advice lines G4-58 Internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters related to organizational integrity, such as escalation through line management, whistleblowing mechanisms or hotlines Governance & Ethics (11), Corporate Website: http://investor.directv.com/overview/ business-strategy/consolidated/default.aspx Ethics Hotline Ethics Hotline GRI 117
GRI continued SPECIFIC STANDARD DISCLOSURES Full Partial Not Reported Profile Disclosure Description Reference/Response Economic Performance G4-EC1 G4-EC2 G4-EC3 G4-EC4 Disclosure on Management Approach Direct economic value generated and distributed (EVG&D) on an accruals basis including the basic components for the organization s global operations as listed below Risks and opportunities posed by climate change that have the potential to generate substantive changes in operations, revenue or expenditure Plan liabilities met by the organization s general resources; estimated value of those liabilities Total monetary value of financial assistance received by the organization from governments during the reporting period Economic Impact, Annual Report Economic Impact (66), 10K (39) Environmental Stewardship (22), 10K (23), CDP 10K (96) No significant assistance was received Materials Disclosure on Management Approach Product Materials and Packaging G4-EN1 Total weight or volume of materials that are used to produce and package the organization s primary products and services during the reporting period by: Non-renewable materials used Renewable materials used Materials Used by Weight (marketing paper only, in pounds) 2013: 40,922,322 2012: 42,208,322 2011: 41,030,000 G4-EN2 Percentage of recycled input materials used to manufacture the organization s primary products and services Recycled Input Materials (marketing paper only, percent) 2013: 56% 2012: 69% 2011: 76% Energy Disclosure on Management Approach Approach, Environmental Stewardship: Energy & GHG Emissions G4-EN3 Energy consumption use within the organization Energy Consumption Within the Organization (Global MWh) 2013 2012 2011 Fuel 414,772 451,042 483,378 Electricity 211,399 211,831 201,117 Total 626,171 662,873 684,494 Emissions Disclosure on Management Approach Approach, Environmental Stewardship: Energy & GHG Emissions; Product Efficiency G4-EN15 Direct greenhouse gas (GHG) emissions (scope 1) DIRECTV Statement of Greenhouse Gas Emissions for the year ended Dec. 31, 2013; Environmental Stewardship: Energy & GHG Emissions G4-EN17 Other, indirect GHG emissions (scope 3) Other Indirect Greenhouse Gas (GHG) Emissions (Scope 3) (MTCO 2E) 2013 2012 2011 Upstream Transport: 54,413 54,422 60,687 Business Travel: 16,883 15,269 13,464 Use of Sold Products: 484,995 532,298 NR* Leased Assets: 3,394,601 3,433,895 NR* *Not reported. G4-EN19 Reduction of GHG emissions MTCO 2e 2013: 8,845 2012: 15,550 GRI 118
GRI continued SPECIFIC STANDARD DISCLOSURES Full Partial Not Reported Profile Disclosure Description Reference/Response Products and Services G4-EN27 Disclosure on Management Approach Extent of impact mitigation of environmental impacts of products and services Environmental Stewardship: Product Efficiency; ewaste and Recycling Environmental Stewardship: Product Materials and Packaging (33) Compliance Disclosure on Management Approach Environmental Stewardship: Strategy G4-EN29 Significant fines and non-monetary sanctions None incurred in reporting period. Employment Disclosure on Management Approach Talent Management G4-LA2 Benefits which are standard for full-time employees of the organization Full-time employees are eligible for the following benefits: but are not provided to temporary or part-time employees, by significant Medical Health Flexible Spending locations of operation Dental Account Vision Dependent Care Flexible Disability Spending Account Life Insurance Stock (Directors and above) Leave of Absence Business Travel Accident (family, medical, personal) Insurance EAP 401(k) Pension Part-time employees are eligible for the following benefits: Medical EAP Dental Business Travel Accident Vision Insurance Disability Dependent Care Flexible Leave of Absence Spending Account (family, medical, personal) 401(k) Pension Retiree Benefits: Retiree Medical Retiree Life Insurance Labor/ Management Relations G4-LA4 Training and Education G4-LA10 G4-LA11 Disclosure on Management Approach Minimum number of weeks notice typically provided to employees and their elected representatives prior to the implementation of significant operational changes that could substantially affect them Disclosure on Management Approach Type and scope of programs implemented and assistance provided to upgrade employee skills Percentage of total employees by gender and by employee category who received a regular performance and career development review during the reporting period Talent Management There are no DIRECTV employees covered by collective bargaining agreements Talent Management Talent Management (47) 100% of employees received regular performance and career development reviews* * DIRECTV provides feedback and reviews for all employees who complete a calendar work year. The review and feedback process may look different depending on an employee s business unit. GRI 119
GRI continued SPECIFIC STANDARD DISCLOSURES Profile Full Partial Not Reported Disclosure Description Reference/Response Diversity Disclosure on Management Approach Diversity and Inclusion and Equal Opportunity G4-LA12 Percentage of individuals within the organization s governance bodies in each of the following diversity categories: Gender Age group: under 30 years old, 30-50 years old, over 50 years old Other indicators of diversity where relevant Local Communities G4-SO1 Percentage of employees per employee category in each of the following diversity categories: Gender Age group: under 30 years old, 30-50 years old, over 50 years old Minority groups Disclosure on Management Approach Percentage of operations with implemented local community engagement, impact assessments, and development programs Composition of Board Female: 17% Male: 81% Age Group: 100% of Board members are 51+ years of age Composition of employees % Full-time employees: 97% % Part-time employees: 3% Gender breakdown of full-time employees Gender breakdown of part-time employees Female: 29% Male: 71% Female: 61% Male: 39% People managers: 13% Individual contributors: 87% Gender breakdown of people managers Gender breakdown of individual contributors Female: 28% Male: 72% Female: 31% Male: 69% Employee age breakdown Under 30 years old: 27% 30-50 years old: 61% 51 years old or older: 13% Local Community Impact: Education We believe all of our operations have implemented local engagement programs Compliance Disclosure on Management Approach Local Community Impact G4-SO8 Significant fines and non-monetary sanctions DIRECTV did not incur any significant fines during the reporting period Product and Service Labeling G4-PR5 Marketing Communications G4-PR6 Sale of Banned or Disputed Products G4-PR7 Customer Privacy G4-PR8 Disclosure on Management Approach Results or key conclusions of customer satisfaction surveys (based on statistically relevant sample sizes) conducted in the reporting period Disclosure on Management Approach Products sold by the organization that are: Banned in certain markets The subject of stakeholder questions or public debate Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship Disclosure on Management Approach Total number of substantiated complaints received concerning breaches of customer privacy Customer Experience Customer Experience (39) Customer Experience DIRECTV did not sell any products banned or debated during the reporting period 10K (20, 21) Customer Experience Customer Experience (39) Compliance Disclosure on Management Approach Customer Experience G4-PR9 Total monetary value of significant fines for non-compliance with laws and 10K (19) regulations concerning the provision and use of products and services GRI 120
FAQ FREQUENTLY ASKED QUESTIONS ABOUT OUR COMPANY'S CSR EFFORTS DIRECTV hears frequently from many different stakeholders such as customers, employees, investors and researchers who seek to learn more about our company s Corporate Social Responsibility (CSR) efforts. We have consolidated the questions we hear most often into a list with our responses below. If there is other information you cannot find here, we recommend you search our 2013 CSR report or contact our Corporate Citizenship department at corporatecitizenship@directv.com or our Sustainability department at sustainability@directv.com. GREENHOUSE GAS EMISSIONS What is your carbon footprint? For 2013, our Scope 1 carbon footprint is 101,236 metric tonnes carbon dioxide equivalent (MTCO2e). Our Scope 2 carbon footprint is 94,584 MTCO2e. After accounting for 183 MTCO2e of carbon offsets, our combined Scope 1 and Scope 2 carbon footprint is 195,367 MTCO2e. Do you have goals related to your carbon footprint? Yes. DIRECTV aims to reduce its combined Scope 1 and Scope 2 emissions by 40 percent by 2020 from a 2011 baseline. This is approximately equal to a 4.5 percentage point annual decrease. Do you utilize carbon credits? Yes. A facility in New Hampshire acquired credits from renewable energy equivalent to 183 MTCO2e. Do you capture or sequester carbon? No. How did your emissions compare to the previous year? DIRECTV reduced its 2013 global Scope 1 and Scope 2 emissions by 10,777 MTCO2e relative to 2012. This equals a 5.2 percent year-on-year reduction. Do you report emissions at any level other than enterprise? Yes. Our combined U.S. Scope 1 and Scope 2 carbon footprint is 181,752 MTCO2e, and our combined Latin American Scope 1 and Scope 2 carbon footprint is 13,885 MTCO2e. FAQ 121
FAQ continued Do you normalize your carbon footprint data? Yes, for Scope 1 and Scope 2 emissions. See table below for revenue normalization figures. 2013 METRIC TONNES EMITTED PER MILLION $US REVENUE (SCOPE 1 AND SCOPE 2 EMISSIONS) Emission Type 2013 Carbon dioxide equivalent 6.2 Carbon dioxide 6.0 Direct carbon dioxide 3.1 Indirect carbon dioxide 2.9 Methane 0.0002 Nitrous oxide 0.0001 Other emissions (e.g., refrigerants) 0.0002 Do you report Scope 3 emissions? Yes. Our total Scope 3 emissions were 3,950,892 MTCO2e. The table below breaks these emissions down by their relevant category. 2013 SCOPE 3 EMISSIONS (MTCO2e) Category Emissions Category 4: Upstream Transportation & Distribution 54,413 Category 6: Business Travel 16,883 Category 11: Use of Sold Products 484,995 Category 13: Leased Assets 3,394,601 Do you have any Toxics Release Inventory (TRI) emissions? No. FAQ 122
FAQ continued ENERGY USE What is your total energy use? 626,171 megawatt-hours (MWh). What is your total energy use on a normalized basis? 19.7 MWh per million dollars of revenue. What percentage of your operating budget does your energy use represent? 0-5 percent. What is the gross total of energy used that is derived from renewable sources? 5,928 MWh. Note: This only includes renewable sources that we directly purchase and does not include any renewable energy such as wind or hydropower delivered to our facilities by the electrical grid. What is the percent of total energy use that is derived from renewable sources? Less than 1 percent. What is the gross total of energy used that is derived from non-renewable sources? 620,244 MWh. What is the percent of total energy use that is derived from non-renewable sources? More than 99 percent. What is your total electricity consumption? 211,399 MWh. What is your total electricity consumption on a normalized basis? 6.7 MWh per million dollars of revenue. FAQ 123
FAQ continued WATER How much water do you use? For 2013, we estimate we used 120 million gallons of water to support our direct operations in the United States. On a normalized basis, this equals approximately 4.8 gallons of water per thousand dollars of revenue earned by DIRECTV in the United States in 2013. Do you have a water recycling program? Yes. A recent upgrade to our Los Angeles Broadcast Center allows us to recycle more water through our chiller system before flushing. This change saves more than 700,000 gallons of water annually. WASTE How much waste did you generate in 2013? For 2013, we estimate we produced 10,248 tons of waste in the U.S. Of this, we diverted 5,303 tons from landfills for a diversion rate of 51.7 percent. We have not yet been able to estimate our Latin American waste volume. Do you have a waste goal? Yes, our waste goal is to reduce the amount of waste entering landfills by 95 percent by 2020 against our 2012 baseline. Do you break down your waste disposal into different categories? Yes. The following table describes the volumes of our waste in the U.S. in each of the relevant waste categories for 2013 (percentages do not equal 100 percent due to rounding). VOLUMES OF WASTE U.S. Type Amount (tons) Percentage Landfill 4,945 48% Recycling 3,116 30% Baled corrugate 1,170 11% Single stream 847 8% Shredded paper 171 2% Do you have waste programs in place? Yes. We have a wide variety of waste programs to manage solid waste, recyclable materials and universal waste. We also manage compostable material at a small number of sites. FAQ 124
FAQ continued ENVIRONMENTAL MANAGEMENT AND COMPLIANCE Do you have an environmental management system? DIRECTV has an environmental management system for its Field Services operations. This system includes: a written Environmental Policy & Program document; procedures and training for managing waste and recycling; regular audits and inspections; and an annual review of the systems to ensure compliance. Is your environmental management system ISO 14001 certified? N/A. Are any of your locations ISO 14001 certified? No. Have you had any significant environmental spills in the past three years? No. SUSTAINABLE FACILITIES Are any of your buildings LEED certified? Yes. Our headquarters building in El Segundo, Calif., is LEED Platinum certified and an office building in Colorado is LEED Gold certified. Are any of your buildings ENERGY STAR qualified? Yes. Our Huntington, W. Va., call center and an office building in Colorado are ENERGY STAR qualified. Do you have a sustainable buildings policy? Yes. We have a comprehensive sustainability policy for our customer care centers that emphasizes sustainable facilities operation. SUSTAINABILITY GOVERNANCE Is the compensation of executives and/or other employees tied to sustainability metrics? Yes. A component of the incentive compensation for our Chairman, President & CEO is tied to CSR and sustainability metrics. Further, our Executive Vice President, services and operations has incentive compensation linked to performance on public disclosure of sustainability efforts. Is there senior-level responsibility for sustainability? Yes. The Nominating and Governance Committee of our Board of Directors has responsibility for Board oversight of our corporate social responsibility programs, including sustainability. Our CSR Steering Committee, chaired by our Chief Human Resources Officer and Executive Vice President, services and operations, has executive oversight of our sustainability programs, while our Executive Vice President, services and operations, has day-to-day oversight of our sustainability team s efforts. FAQ 125
FAQ continued ASSURANCE Is your CSR report or any of its data externally assured or verified? Yes. Deloitte & Touche LLP provides review services for our Scope 1, Scope 2 and Scope 3 carbon footprint. You can see our Statement of GHG Emissions at http://www.directv.com/cms2/support/directv_statement_ of_greenhouse_gas_emissions_with_deloitte_and_touche_r.pdf. Further, our electronic waste recycler is audited to the R2 recycling standard. CORPORATE CITIZENSHIP What does the DIRECTV Corporate Citizenship department do? DIRECTV s Corporate Citizenship department is responsible for developing and maintaining the company s strategy for philanthropic giving and community involvement. The department manages charitable giving in DIRECTV s name, including cash and in-kind donations, and is the primary point of contact for causerelated outreach and community involvement. What are DIRECTV s philanthropic giving guidelines? DIRECTV typically supports U.S.-based nonprofit organizations with which we have previously established relationships. DIRECTV does not currently operate a grant program and does not seek or review unsolicited donation applications and project proposals. Examples of proposals that DIRECTV s Corporate Citizenship department will not consider include: Requests for discounted or temporary DIRECTV programming, hardware, installation or televisions (although schools may apply for complimentary programming through our DIRECTV GOES TO SCHOOL program). Requests for sponsorships or grants for conferences, seminars, contests, fund-raising activities, marketing, sports events or teams. Requests from non-tax-exempt organizations. Requests from for-profit ventures. Requests from programs that discriminate on the basis of race, creed, color, religion, gender, national origin, sexual orientation, age or disability. Unsolicited proposals received by the Corporate Citizenship department may not be reviewed and may not receive a response. If you have questions about DIRECTV s strategy for philanthropic giving and public affairs, please contact us at CorporateCitizenship@directv.com. Does DIRECTV report on philanthropic giving? DIRECTV is a member of the Committee Encouraging Corporate Philanthropy (CECP) and has participated in their Corporate Giving Standard benchmarking survey each year since 2007. This unique peer benchmarking tool for corporate giving professionals is used to produce CECP s annual Giving in Numbers report that provides an analysis of giving trends for companies and the public. Our participation in CECP s benchmarking necessitates rigorous data tracking on our charitable giving globally, which has increased year-over-year since 2007. DIRECTV does not publicly disclose our total cash or non-cash contributions. FAQ 126
FAQ continued Corporate Profile: http://investor.directv.com/overview/corporate-profile/default.aspx Investor Relations: http://investor.directv.com/ 2013 Annual Report: http://investor.directv.com/files/doc_financials/annual/directv%202013%20annual%20report.pdf 10-K (amended 6/30/2014): http://directv.q4cdn.com/476ac51d-867d-4eee-a951-ecb73f163985.pdf?noexit=true Proxy Statement (2014): http://investor.directv.com/files/doc_financials/proxy/directv%202014%20proxy%20statement.pdf Corporate Governance: http://investor.directv.com/corporate-governance/elected-officers/default.aspx Code of Ethics: http://investor.directv.com/files/doc_downloads/documents/code%20of%20ethics%20and%20 Business%20Conduct%20%20rev%2012-19-2013.pdf American Customer Satisfaction Index Benchmark: http://www.theacsi.org/index.php?option=com_content&view=article&id=149&catid=&itemid=214&c= DIRECTV Electronics Industry Citizenship Coalition (member): http://www.eiccoalition.org/ Alianza contra Piratería de Televisión Paga (member): http://www.alianza.tv/en/ FAQ 127
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