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  • 2017 Corporate Responsibility Report
2017 Corporate Responsibility Report

Magyar Telekom

Why does corporate responsibility matter to our company?

Christopher Mattheisen, Chief Executive Officer

The ICT img sector is at the start of a sharp increase in development. This trend might be positive or negative, but society, the economy and the environment will all be affected by these changes. As CEO of the Magyar Telekom Group, I am very much aware that our present decisions will shape these future trends.

The Magyar Telekom Group is one of the leading information and communication service providers in the region. The Group is committed to the idea of sustainability in line with its mission. I believe that all forward-looking companies should play a significant role in ensuring that economic development is consistent with the outcomes defined by the UN Sustainable Development Goals. This group of companies has been addressing the sustainability implications of its operations for more than 10 years. Sustainability continues to be an essential strategic principle and it determines all our operational activities, together our approach to corporate governance and business. Magyar Telekom has a long track record of highlighting the concept of sustainability for its customers and partners. This is achieved through a forward-looking mindset, and innovative and sustainable products and services.

Sustainability is mutually beneficial. We therefore adopt a fun approach and strive to make it accessible and instructive for everyone. We have also developed the “hello holnap!” mobile application which enables customers to collect points by taking sustainable action. They can then use the points to make donations. Since 2015, our Group’s operations have been completely carbon neutral. This puts us ahead of the largest global telecommunication companies. Our company has an excellent record of sustainability over many years and I am proud of this outstanding achievement. It is a paradigmatic representation of our objective to lead by example. I am also delighted to say that Magyar Telekom achieves its outstanding business success as a responsible and sustainable enterprise. The company always focuses on customers and employees, i.e. its environment, and is pursuing the current five-year sustainability strategy. As the company’s CEO, this is one of my key objectives and I expect our employees to continue to act in the same spirit.

Christopher Mattheisen, Chief Executive Officer

Progress

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Awards, Memberships and Ratings

Awards and accolades achieved in 2017:

  • Oekom img, B Prime category
  • Membership of the FTSE4Good img Emerging Index
  • Membership of the CEERIUS Sustainability Index
  • Hungary Award for Best Sustainability Report by Deloitte
  • Disability-Friendly Workplace Award by Salva Vita Foundation

A list of all the awards won since the first sustainability strategy was launched is available here.

Our sustainability activities were assessed by Oekom, FTSE Russell and Trucost in 2017. During the reporting period, we also participated in the Carbon Disclosure Project (CDP img).

Magyar Telekom Group stays totally Carbon Neutral

The Magyar Telekom Group stayed completely carbon neutral in 2017 and repeated its success from the previous 2 years. This achievement has put the company ahead of the largest telecommunication companies around the world. Our success is based on the purchase of 100% renewable energy, enhancing energy efficiency, implementing carbon offset, and saving energy. The Group has defined an average emission value for our company cars and we reward compliance with the emission value. Users of cars with emissions above the reference values attracted penalty payments that were used for carbon offset. In 2017, we purchased CO2 certificates that offset 25,000 mt of CO2

BE SMARTER! - Our Sustainability Strategy from 2016 to 2020

Our company aims to make sustainability an integral part of our business. We therefore developed a new sustainability strategy for the period from 2016 to 2020 that was influenced by the expectations of responsible investors, EU directives, industrial and corporate trends, local conditions, and consumption patterns.  Climate protection, education, and digitally enabled sustainability will be the major focus of the strategy until 2020. Our strategy continues to remain valid and no major update was therefore needed.

Climate Protection – Our goal is to help our customers become climate conscious. Our ambitious objective is to generate revenue from our climate protection activities while at the same time reducing our actual CO2 emissions below 100,000 metric tons. This enables us to enhance our activities directed toward decreasing emissions and specifically build on our “green” services.

Education – Our goal is to directly or indirectly reach 100,000 people in Hungary through our training program by 2020 with the objective of educating the public and our customers. We are focusing primarily on programs aimed at eliminating the digital gap and expanding the succession pool in industry.

Digitally enabled Sustainability – As a sustainable digital company, Magyar Telekom enables its customers to use sustainable digital services. We strive to pursue responsible marketing and activities that enable and inspire others. Awareness in the public domain of Magyar Telekom as a sustainable company is projected to reach 50 percent.

hello holnap! – the Sustainability Mobile App

Our hello holnap! mobile phone app is part of the hello holnap! sustainability initiative. It has been downloaded 12,000 times from AppleStore, GooglePlay and Windows Store. The app enables users to earn points for performing tasks supporting sustainable development that are organized by the operator and its partners. The points can then be redeemed in forints and spent on donations. Users can earn points for various tasks including the following:

  • Donations to organizations through achievements
  • Partnership with enterprises in the sharing economy to collect points (e.g. car pooling or food from local farmers)
  • Donation partnerships with NGOs

Points can also be earned by buying a sustainability-related mobile phone from the Magyar Telekom portfolio. Magyar Telekom defines a sustainability-related phone as one that either has an international certificate (e.g. TCO), an environmental sustainability declaration or social attributes (e.g. for elderly people or the disabled).

Tariffs for Disabled People

The most important feature of these tariffs is that customers with disabilities can get a special discount and optional modes of use adapted to their specific circumstances, e.g. for people with impaired vision or hearing, by selecting various volumes of sound, font sizes, and data package versions. This tariff package was specially designed in cooperation with experts from relevant NGOs: the Hungarian Association for the Deaf and Hearing Impaired (SINOSZ), the National Federation for Disabled Persons (MEOSZ), the Hungarian Federation for the Blind and Partially Sighted (MVGYOSZ), the Hungarian Association for People with Intellectual Disabilities (ÉFOÉSZ), and the National Autism Association (AOSZ).

In 2016, we updated our tariffs. The hello holnap! fleet package allows the subscriber to call other subscribers for free. Users can also name one helper or relative that they can call free of charge as well. NGOs helping disabled people are also offered a special tariff package with the same conditions as the hello holnap! fleet. In Budapest, we offer free WiFi img to two cafés operated by disabled people.

Fostering Digital Inclusion

Become an IT expert!
The Hungarian labor market currently has a shortfall of 10,000 IT experts. The Magyar Telekom Group is therefore trying to close the gap by launching the career orientation program “Become an IT expert!”. The objective of the program is breaking down stereotypes and making an IT career more attractive. Telekom volunteers are highlighting the options of an IT career to students of all ages. So far 23,000 students have participated in this training. The teaching material presents the topic to elementary schoolchildren in a playful approach and will be available soon. The long-term objective of the program is to initiate a social dialogue about the IT profession and to include other IT companies in the initiative.

Digital Bridge Program
During the 12 years since Magyar Telekom launched its Digital Bridge Program, the inhabitants of small, disadvantaged districts with sparse populations have been taught how the internet can be used. They have also been shown the many different applications. Demonstrations have been provided so people can see how it can make their life easier. Participants in the program are helped by volunteers from Magyar Telekom who provide advice tailored to individual needs. Seven events were organized during 2017, and three of these were held at elementary schools organized as a summer digital “daycare” event for school pupils aged 10 to 14.

10th Sustainability Day

The 10th Sustainability Day festival conference was organized in Budapest on the last Saturday of September.

In 2017, a record number of 9,000 people visited the event that included five panel discussions focused on sustainability topics. “FLOW” was the keynote theme of the 10th Sustainability Day. The experts discussed flow in the environment, in society, in the economy and flow in people. Visitors also had an opportunity to visit more than 40 exhibitors and meet non-profit organizations. The all-day event ended with an ‘after party' including a concert given by Irie Maffia and djs.

Awards were also presented in a special music slam, filmmaking and creative contest entitled “FLOW or FOLLOW?”.  

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Sustainability Press Awards
On this year’s Sustainability Day, Sustainability Press Awards were presented to journalists and bloggers in the three new categories of “TV /radio / video content”, print and online writing cikk, and “blog, vlog”.

Awards for suppliers and other companies

DELFIN Award
On 12 June 2017, the award ceremony for the 10th DELFIN Award for suppliers and other companies was held as part of the 18th Sustainability Roundtable in Budapest. DELFIN is a Hungarian acronym meaning “Award for a Committed, Sustainable and Innovative Generation”. These awards are bestowed on suppliers offering outstanding commitment to sustainable development in four categories:

  • Support for equal opportunities and promotion of non-discrimination inside and outside the company
  • Innovation in the interests of sustainability
  • Sustainability education and raising awareness
  • Investment and development related to climate protection

This year, our roundtable discussion focused on sustainable consumers.  Emese Gulyás (Association of Conscious Consumers) talked about the main results of The Conscious Consumer Market Report and Péter Fülöp (NRC Market Research Ltd.)  presented the initial results of Sustainable Consumer Research carried out by Magyar Telekom. After the presentations, experts held a discussion on the topic. The winners presented their projects in the final session of the event.

Magyar Telekom’s TOP3 sustainable supplier
Besides the DELFIN Award, the title of “Magyar Telekom’s TOP3 sustainable supplier” was also awarded at the event. In 2016, Magyar Telekom involved 122 of its suppliers in the sustainable supplier management chain process. The suppliers were assessed on the basis of environmental, social and economic aspects. Infinera Corporation in the US, ROMKATEL SRL in Romania, and Nokia Solutions and Networks TraffiCOM Ltd. in Hungary achieved the highest scores in the Web audit.

Autistic Art Foundation

As a communications company, Magyar Telekom tries to help those who are unable to communicate or who have limited communication abilities. We therefore signed an NGO strategic partnership with the Autistic Art “Mosoly Otthon” Foundation to assist people living with autism.

Every 67th person in Hungary is impacted by autism. Although this is an astonishingly high number, the majority of Hungarians have very little awareness about this issue. We would like to use our expertise and technology at Magyar Telekom to help those people for whom communication poses a barrier in their everyday lives.

This is why we established an NGO partnership with the Autistic Art Foundation in 2016. Over the three years of our cooperation, we have used our communication power, existing interfaces and social relations to create new initiatives on the basis of a meaningful dialogue. We have also worked together with the Autistic Art Foundation to raise awareness in our society, take opportunities to close social gaps, and find new ways of providing therapy with the help of technology.

In April 2017, we organized a special offer in which Telekom donated one Tale tablet to the Autistic Art Foundation for each Tale tablet sold. A total of 176 Tale tablets were donated. The Autistic Art Foundation is using the tablets to develop a methodology for special therapy. It is also building up a methodology to track the impacts of these activities. Autistic Art and Telekom organized a workshop with big data experts and therapists in order to identify new ways of carrying out research into autism.

In April, we also aimed to take our partnership close to our customers and our business. An autistic artist designed the T-shirt to celebrate the Telekom Vivicittá Defensive Run for the City. The Autistic Art Foundation held an exhibition in Telekom's tent during over the two days of the running event, and the company presented the donations from the charity run to the Foundation.

As part of the International Volunteer Day, we joined the sustainability media club in organizing the charity cookie market entitled "It is good to give!". All the revenue generated by this campaign was donated to the Autistic Art Foundation.

Key facts at a glance

Markets, business Areas and market share  

Magyar Telekom is Hungary's leading ICT img provider and the Group offers various products and services to its customers such as phone, broadband, TV, and IT. Magyar Telekom is a hallmark for high quality, reliability and a uniquely broad range of services. Magyar Telekom aspires to lead and shape the market through innovative solutions.

The operations of the Magyar Telekom Group cover three basic business areas:

  • Fixed line and mobile communications services for residential customers (Telekom)
  • Services for SMB customers (Telekom)
  • Corporate services supplied to enterprise customers (T-Systems)

The company’s management structure empowers it to capitalize on innovative service and business opportunities by responding flexibly to changes in customer demand and market challenges, and by delivering high-quality, state-of-the-art products and services efficiently.  

The companies in the Magyar Telekom Group operating in Hungary manage content, media and other non-access services provided under various brands. The Group’s international member companies operate in the markets of South-Eastern Europe as integrated and alternative telecommunications service providers.

Telekom Hungary’s market shares:

  • Total mobile market: 47.5%
  • Fixed voice market: 53.2%
  • Fixed broadband market: 37.7%
  • TV market: 28.7%
Number of customers  

Telekom Hungary:

  • Mobile services – number of customers: 5,400,966
  • Fixed line services – total voice access: 1,420,725
  • Internet services – total retail broadband customers: 1,062,528
  • TV services – total TV customers: 1,016,192
Number of employees   9,432 (Magyar Telekom Group, including all Hungarian subsidiaries and Makedonski Telekom)
Shareholding of Deutsche Telekom AG since   2000
Certifications   ISO 9001, ISO 14001, ISO 27001, OHSAS 18001 img; Magyar Telekom Plc.: ISO 22301, MSZ 28001; Magyar Telekom Plc & T-Systems: ISO 50001, ISO 20000-1
Please refer to the internet for further information   www.telekom.hu
Local CR reports    One of the Magyar Telekom Group's commitments is to publish an annual report about its sustainability performance. Reports are prepared in accordance with the GRI principles (GRI Standard from 2016) of the Global Reporting Initiative (GRI). The reports therefore comply with the principles of transparency and international comparability. Each year since 2007, Magyar Telekom has achieved the highest level of compliance in accordance with international principles. The Sustainability Report in 2013 therefore applied the A+ level principles for the seventh time in succession. In 2014, an independent assurance report was completed with the GRI criteria applied in accordance with the comprehensive level and certified by PricewaterhouseCoopers to the ISAE 3000 img international standard. Further details on the company’s sustainability performance can be found in the annual sustainability reports.