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  • 2018 Corporate Responsibility Report
2018 Corporate Responsibility Report

Magyar Telekom

Why does corporate responsibility matter to our company?

Tibor Rékasi, Chief Executive Officer

At Magyar Telekom we firmly believe that our actions now will define the lives of present and future generations. Furthermore, we are confident that our company’s long-term success largely depends on the level of our social commitment. This is confirmed by the fact that 27.8% of our free-float shares are held by responsible investors.

Our fourth Sustainability Strategy encompasses the period from 2016 through 2020. It was drawn up with the focus on the UN Sustainable Development Goals (SDG). The main objective of the strategy is to make sustainability an integral part of business. This can only be achieved by incorporating sustainability into our core business activities. We do that by focusing on three areas that have been defined as top priorities: climate protection, education, and digitally enabled sustainability. All three focuses are aimed at creating a smarter market and approach to operations. In 2018, diversity and equal opportunity were added in response to the relevant global trends.

We believe that the world is heading toward integration and connectivity, and Magyar Telekom intends to serve, and to define and shape this digital trend using its innovative technologies and services. Our company is committed to the concept that the age we live in now is the best era. We believe that we have to take action now to connect everyone into the digital present and enable people to experience the unlimited potential it represents.

The validity of our sustainability efforts is confirmed by the fact that the annual report by the responsible investment assessment agency – ISS-oekom – published in April 2018 designated Magyar Telekom as the ICT img company demonstrating the best sustainability performance in its sector. We also remained a member of the FTSE4Good img Emerging Index in 2018, where the assessment put the company among the top 10% in the sector. At the same time, we received an AA rating from MSCI ESG img Research1. All these assessments show that we run a responsible corporate group that is recommended as a long-term investment.
In 2019, we will continue our work toward achieving the goals set out in our Sustainability Strategy, and to educate members of Generation Now to empower the greatest possible number of people so that they benefit from the digital achievements of this era. This will make their lives more rewarding.

Tibor Rékasi, Chief Executive Officer

 

1 on their scale ranging from CCC to AAA

Awards, Memberships and Ratings

Awards and accolades achieved in 2018:

  • Oekom img, B Prime category
  • Membership of the FTSE4Good img Emerging Index
  • Membership of the CEERIUS Sustainability Index
  • Best Customer Experience Award (by DEVELOR)
  • Most Appealing Workplace Award (by PwC)
  • Disablility-Friendly Workplace Recognition award
  • Family Friendly Company Mentor Organization 

Since its introduction in 2016, Magyar Telekom has been part of the FTSE4Good Emerging Index, which measures the sustainability performance of companies in emerging economies, and currently encompasses 23 countries. At the conclusion of the assessment, Magyar Telekom Group’s sustainability activity received 4.7 out of the maximum number of 5 points. This ranks the company among the top 10% by comparison with its global peers.

Magyar Telekom Plc. is named as the TOP1 performer of the telecommunications sector in ISS-oekom’s Corporate Responsibility Review 2018. The rating agency compiled this review of publicly available data from December 2017 by carrying out a detailed assessment of sustainability-related operations of 3,800 companies across the globe using approximately 100 indicators. The achievement of leading sectoral status through our dedication to sustainability confirms the validity and efficient implementation of our Sustainability Strategy.

In 2018, Magyar Telekom received a rating of AA (on a scale of AAA-CCC) in the MSCI ESG img Ratings assessment.

During the reporting period, we also participated in the Carbon Disclosure Project (CDP img).

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 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 we just extended our goals.

Climate Protection – Our goal is to help our customers become more 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 1,000,000 people in Hungary through our training program by 2020 with the objective of educating the public and our customers, and with edutainment/inspitainment nonspot contents. We are focusing primarily on programs aimed at eliminating the digital gap, expanding the succession pool in industry and helping our customers recognize the digital benefits of NOW. The campaign Generation NOW aims at connecting everyone into the digital present and enable people to experience the unlimited potential it represents.

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.

Climate Protection at Magyar Telekom

Magyar Telekom stays totally Carbon Neutral
The Magyar Telekom Group stayed completely carbon neutral in 2018, repeating its success from the previous three 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 for the Hungarian member companies, enhancing energy efficiency, implementing carbon offset, and saving energy. In 2018, we purchased CO2 certificates that offset 30,000 metric tons of CO2.

In 2018 Magyar Telekom committed to set a Science Based Target.


Community Solar Project for Employees
In 2018, a new employee solar project was started. Our colleagues were able to rent solar panels which were then installed on our training facilities. They received benefits such as a new HBO GO subscription for a year or an electric car for a weekend as a reward for their efforts and their contribution to our climate protection activities. 

Stop Wasting – Start Caring!
In order to reduce the harmful effects of waste on the environment: 

  • We make sure that unused equipment gets reused within the company, or by selling it to employees or external partners, or by renting, leasing, or transferring them without compensation (donation).
  • We are collecting waste selectively at more sites. 
  • We improve the equipment’s effectiveness by upgrading our existing contracts, regularly updating collection points, and through communication. 

The principal aim of the company is to carry out its operations with the minimum impact on the environment. We pay special attention to upgrading, repair and reuse of the equipment in our network. The reuse rate of CPE devices is 48%.

We comply with statutory regulations in force and inform our customers about the various waste-disposal options for used equipment and batteries on our websites. The volume of such waste showed a decreasing trend even though we provide customers with an opportunity to exchange returned waste and receive a discount on the price of new devices.

All of the products we sell are certified with energy efficiency certificates in conformity with the requirements of the European Union. They are also in compliance with the environmental standards defined by Hungarian law. Manufacturer’s statements with detailed information about life cycle, reuse, recycling of the product, used materials, and repairability features are available in all our stores. All of our procured network equipment should meet our high standards of energy efficiency

Digitally Enabled Sustainability

hello holnap! – the Sustainability Mobile App
Our hello holnap! mobile phone app is part of the hello holnap! sustainability initiative. It has now been downloaded more than 17,000 times from the AppleStore and GooglePlay. 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. The main features of the app include the following:

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

Users are able to donate to 11 different NGOs.

In 2018, we updated the app and added a number of social network functions. Now it is easier to earn points and donate them. Users are able to comment on or like the activities and the NGOs in the app.

Autistic Art Foundation
Every 67th person in Hungary is impacted by autism. Despite this astonishingly high number, the majority of Hungarians have very little awareness of this issue. As a communications company, Magyar Telekom tries to help those who are unable to communicate or who have limited communication abilities,

This is why we established a strategic NGO partnership with the Autistic Art “Mosoly Otthon” 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 2018, our objective was once again to take our partnership close to our customers and our business. During this year’s Vivicitta Spring Half Marathon, Telekom organized a charity run in aid of those living with autism. On the first day of the two-day running event, a very special running team participated in the 2.4 km Minicitta race. Its members included professional athletes like attackers Tóth Renátó and Kovács Viktor, representing the FTC ice hockey team, goal keeper Pleszkán József, player in the FTC U10 ice hockey team, 49 times national team football player Lisztes Krisztián, the professional coordinator and director of succession of FTC, Theo Schneider, as well as boxers Bedák Pál and Kótai Mihály and para-athlete skier Lőrincz Krisztina. The team is also joined by Novák Dániel aka Gogetinho, e-athlete of FTC FIFA18. Members of the Sustainability Media Club also attended the charity run.

The team members notched up the kilometers, and Magyar Telekom donated HUF 1,000 to the Autistic Art Foundation for each kilometer run by members of the charity team, and all the runners participating in this race.

On 3 December 2018, Magyar Telekom, T-Systems Hungary and the Sustainability Media Club jointly organized the annual “It is good to give!” cookie market at the new Headquarters. This year, colleagues were able to buy handmade items produced by people living with autism. By digital activities (e-post cards, hashtag campaign) anyone could grow the amount of the donations. At the end of the campaign, the Autistic Art Foundation received HUF million 7.2 donation.

Promoting education

Fostering Digital Inclusion
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 more than 25,000 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.

In 2018, 86 teams (344 students of 183 schools) joined the “Become a Creative Mind” competition which aims to promote digital education. The teams had to solve tasks in four topic areas (Insta-History, Prisma-Draw, Slowmo-Chemistry and Excel-football) using their digital tools and applications.

11th Sustainability Day
The 11th Sustainability Day festival conference was held in Budapest on the last Saturday of September.

In 2018, 6,000 people attended the event which included five panel discussions focused on sustainability topics. This year’s theme of the festival conference was liveliness in the context of environmental, social and economic aspects, and in the lives of individuals.

In the opening speech, András S. Takács, a member of On The Spot, explored the unlimited liveliness demonstrated by young people. The environmental panel discussed the implications of biological diversity for the environment, cities, and people. The panel also demonstrated how to exploit optimum renewal of energy sources and smart climate protection solutions. In the economic session, the members discussed the drivers for a lively economy, the social conditions forming the platform for an innovation culture, and the significance of the liveliness of individuals and infrastructures from startups to digital agriculture. The social panel addressed the change in how we define generations and the role they play, the impact digitalization has on social processes, the role of cultural diversity, and cultural intelligence in today’s society. The +1 session addressing the role of individuals returned to the initial idea of childhood liveliness in the context of parenting. It also looked at the support given to people with disabilities and the motivators for an Olympic champion.

The conclusion drawn over the course of the day was that the main driver behind all of these issues is communities. In today’s world, it is essential for people to find jobs or hobbies that they like. It is also important to establish or join communities that support the whole society.

In addition to the professional panels, more than 40 organizations had booths presenting sustainability to anyone interested in the topic. Visitors to the exhibition were invited to explore renewable energy systems, fashion accessories made of recycled materials, interactive educational programs directed toward increasing kids’ awareness of sustainability, technological developments, and trendy and innovative solutions.

The 11th Sustainability Day event also hosted the award ceremony for the creative contest launched in the summer. The thematic issue “What makes you tick?” inspired many contestants, and a professional jury selected the best entries. The winning projects can be viewed on the Sustainability Day website.

The 11th Sustainability Day event ended with a fantastic Anna & the Barbies concert and a vibrant after-party featuring JumoDaddy and Wonda.

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”. The joint Press Award conferred by the Sustainability Media Club and Magyar Telekom was presented by Magyar Telekom’s Head of PR, István Kutas.

DELFIN Award
On 14 June 2018, the award ceremony for the 11th DELFIN Award bestowed on suppliers and other companies was held as part of the 19th Sustainability Roundtable in Budapest. DELFIN is a Hungarian acronym meaning “Award for a Committed, Sustainable and Innovative Generation”.

This year’s DELFIN winners went to smart and digital solutions, and new modes of community building. The DELFIN Award was established ten years ago to boost and salute sustainability innovations. In the climate protection category, Budapest Airport Plc. won the award with its Greenairport Program that radically reduced the airport’s environmental impact. In the sustainable awareness-raising category, the jury presented two awards. One went to the Kezes-lábas indoor play center, which offers a variety of playtools operated by human-powered electricity. The other award was conferred on the Jövő Öko-Nemzedéke Foundation, which has developed a popular and user-friendly tracking application for illegal dumping that sends direct notifications to local authorities.

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. “Magyar Telekom's TOP3 Sustainable Supplier – 2017" title was conferred on Cisco International Limited because of its focus on selecting suppliers based on sustainability factors, Huawei Technologies Hungary Kft. for integrated sustainability aspects embedded in its corporate governance, and Capgemini Magyarország Kft. with an exemplary approach to business ethics and anti-corruption.     

Silver Age
Magyar Telekom, T-Systems Hungary, and their predecessors’ retired colleagues can take part in a quarterly community meeting where volunteers help them to be part of NOW. The retired colleagues can find out about the company’s current operation, results, and goals. It provides a good opportunity for them to understand the digital world and get to know how to use it safely.     

Volunteering
Magyar Telekom is a responsible large enterprise employing several thousands of employees, and it promotes and encourages volunteering within the company. Volunteering is of key importance to us because we believe our joined-up volunteering work exerts a very strong community-building effect.

As a part of the third Telekom Volunteer Day, nearly 1000 employees of the Group took part in the countrywide Volunteer Day Program organized by Magyar Telekom and T-Systems Hungary. This program gave a new look to the environment of 25 locations, including kindergartens, schools, social facilities, and residential homes.

The volunteers cleaned up yards in the Budapest region belonging to the Heim Pál and Tűzoltó Street Pediatric Hospitals. They also painted the walls of the gym at the latter. The volunteers worked on the train station buildings of the MÁV – Children’s Train at Normafa and at Széchenyi-hegy, as well as 18 kennels of the Ebremény Association – Strázsa Dog Shelter. Participants dealt with the spread of invasive plants and restored habitats at several nature reserve areas.

In the countryside, Telekom colleagues built pedestrian paths, painted benches, and cleaned up gardens in three residential homes for autistic people. They were supported by the company’s strategic partner, Autistic Art Foundation in Kozármisleny, Szakáld and Miskolc. At Szeged, they held artisan programs for disabled students of Gemma Social Service Center and Development School.

This was the first year when employees also held digital training for nearly 2000 students aged 10 to 14 in 13 schools on 13 October as part of the Volunteer Day Program. The volunteers held interactive presentations about social media and personal brands, Internet security, IT careers, and future jobs.

During the year 1059 colleagues worked 11,991 hours of volunteer work, by means of which a theoretical amount of HUF 42.1 million was thus donated to the society.

Diversity and Inclusion

At the beginning of 2018, the Corporate Sustainability efforts of Magyar Telekom have expanded to embrace and reorganize our efforts toward enhancing Diversity Culture and Inclusion within the company group. We took a momentous step in January and launched an anonymous employee survey of perceptions about the state of D&I culture within our company. Nearly 1300 colleagues give their candid opinions on topics ranging from gender equality to perceptions of discrimination for vulnerable social groups (such as Roma, people living with disabilities, members of LGBTQI, single mothers, and 50+ employees a non-management level, etc.). The results of this survey helped us to identify key areas for our Diversity & Inclusion plan with clear and quantifiable objectives up to 2020 ranging from corporate policy to equality-driven revision of specific internal processes along the employee experience cycle, including focus areas like recruitment and talent management.

In November 2017, Magyar Telekom adapted the renewed Code of Human Rights and Social Principles of the Deutsche Telekom Group. On the basis of these reforms, our company was the first within the DT Group to launch e-learning on human rights at an all-employee level informing our employees, close partners, and student workers about our responsibilities in relation to human rights, the responsible ways to take action, and the whistleblower channels available to take a stand against suspected human-rights violations. The obligatory e-learning course was taken by more than 10 000 people and it is now part of the mandatory portfolio of courses at Magyar Telekom.

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 (T-Systems)
  • 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.

Number of customers  

Telekom Hungary:

  • Mobile services – number of customers: 5,302,450
  • Fixed-line services – total voice access: 1,385,153
  • Internet services – total retail broadband customers: 1,126,404
  • TV services – total TV customers: 1,065,746
Number of employees   8,980 (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. Each year an independent assurance report has been 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.