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Act responsibly. Enable sustainability.
 

Magyar
Telekom Nyrt.

Walter Goldenits
Director of Technology
Deutsche Telekom GmbH

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 four areas that have been defined as top priorities: climate protection, education, digitally enabled sustainability, and diversity.

Climate protection
Our goal is to make our customers climate-conscious and be an authentic and responsible company that helps them along that journey. Our ambitious objective is to generate revenue from our climate protection activities, since the ICT  world offers great potential for that, while also pushing Magyar Telekom Group’s current CO2 emissions below 100 000 metric tons.

Education
We want to have a role in educating the public and our customers. Our goal is to directly or indirectly reach one million people in Hungary with our training program by the end of the strategy period. We will primarily focus these digitization and responsibility training sessions in three areas: programs aimed at eliminating the digital gap, the succession pool of the industry, and awareness-raising edutainment/inspitainment activities.

Digitally enabled sustainability
As a sustainable digital company, our clear expectation is that our customers should also use sustainable digital services. Consequently, we strive to pursue responsible marketing and shared activities that enable and inspire others. In this context, our goal is for awareness of Magyar Telekom as a sustainable company to reach 50 percent.

Diversity
As a responsible employer we pay special attention to elimination of discrimination from the workplace environment, ensuring that all voices are heard and all perspectives are respected. Our equity and inclusion efforts imply a special focus on the diverse needs of employees coming from underrepresented social groups in relation to the comfort of wellbeing, sense of belonging, or career aspirations.

 

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.

Number of customers  

Telekom Hungary:

  • Mobile services – number of customers:425 433
  • Fixed-line services – total voice access:343 427
  • Internet services – total retail broadband customers:298 825
  • TV services – total TV customers:215 481
Number of employees   132 (Magyar Telekom Group, including all Hungarian subsidiaries and Makedonski Telekom)
Shareholding of Deutsche Telekom AG since   2000
Certifications   ISO 9001, ISO 14001, ISO 27001, ISO 45001; Magyar Telekom Plc & Makedonski Telekom: ISO 22301; 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.

 

Awards and memberships

Awards and accolades achieved in 2020:

  • Membership of the FTSE4Good Index Series and rating as a TOP1% performer
  • Membership of the CECE SRI img Index of the Vienna Stock Exchange
  • ISS ESG img rating “B” Prime and TOP3 performer
  • MSCI rating result: AA

During the reporting period, we also participated in the Carbon Disclosure Project (CDP img) resulting in a “B” rating.

Climate protection at Magyar Telekom

Magyar Telekom stays carbon neutral for the sixth year in a row
The Magyar Telekom Group stayed carbon neutral in 2020, repeating its success from the previous five years. This achievement has put the company ahead of the largest telecommunications companies around the world. Our success is based on the purchase of 100 percent renewable energy with Guarantee of Origin for the Hungarian member companies, enhancing energy efficiency, implementing carbon offset, and saving energy. In 2020, we purchased CO2 certificates that offset 24 434 metric tons of CO2.

Since 2020, we have received approval for our Science-Based Target and updated to align with the IPCC 1.5°C goals.

Community Solar Project for Employees
In 2020, we continued the community solar project. Our colleagues were able to rent solar panels which were then installed at our training facilities. They received benefits such as an extra day off as a reward for their efforts and their contribution to our climate protection activities.

Green 1 GB
We would like to offer a choice of service to our customers who consider fighting against climate change as important as we do. Since 2019, they have been able to pick a service that protects the climate. This is the globally unique ExtraNet Green 1 GB option. If a customer goes for the ExtraNet Green 1 GB data extension option, we guarantee that we will generate the same amount of green energy as the one required to transmit the customer’s data using our solar power plants. 5.3 percent of the 1 GB data extensions were the Green option in 2020.

We care for our planet
In order to reduce the harmful effects of waste on the environment: 

  • We make sure that unused equipment gets reused within the company, by selling it to employees or external partners, or by renting, leasing, or transferring it without compensation (donation)
  • We collect 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 minimum impact on the environment. We pay special attention to upgrading, repairing and reusing the equipment in our network. The reuse rate of CPE devices is 52 percent.

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. Manufacturers’ 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 needs to meet our high standards of energy efficiency.

Fostering digital inclusion

Fostering digital inclusion
We want to have a role in educating the public and our customers. Our goal is to directly or indirectly reach one million people in Hungary with our training program by the end of the strategy period. We will primarily focus these digitization and responsibility training sessions in three areas: programs aimed at eliminating the digital gap, the succession pool of the industry, and awareness-raising edutainment/inspitainment activities. We have exceeded our target, reaching more than two million people in Hungary between 2016 and 2020 with the programs of Magyar Telekom.

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 more than 30 000 students have participated in this training between 2016 and 2020. The teaching material presents the topic to elementary schoolchildren in a play-based approach and the material 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.

Become a Gen NOW grannie!
In 2019, Magyar Telekom started a new program, digital education customized for pensioners, delivered by students. Our goal is to enable everyone regardless of their age to access the benefits offered by digitalization, not only by providing access, but also by developing their digital competence.

A representative survey conducted by Magyar Telekom shows the specific needs of pensioners open to innovation. Many of them already have some digital skills: among people above the age of 65, 53 percent use the Internet regularly, and 35 percent do so on a daily basis. Senior citizens mainly read the news (74 percent), correspond by email (67 percent), and 26 percent visit media sites, while 14 percent also make online purchases.

Respondents all believe that life is harder if you have no Internet skills: 55 percent of them fully, 28 percent partially agree with that statement. However, only 6 percent of respondents have sufficient knowledge about the Internet. Those who do not use the Internet, would like to learn about it, but they admit that they need help with that. What’s more, they would be happy to get that help from young people. So much so that as many as 38 percent of those who do not use the Internet would be willing to accept help from teenagers, and even among people above the age of 80, 40 percent would be open to the initiative.

Older people must not miss out on the advantages of the digital world, and we are aware that they need support and guidance. Obviously, they should receive that help from those who navigate the field with the greatest confidence, i.e. from high-school students who are happy to spend their time providing assistance. We have designed a program promoting cooperation with high-schools and inviting students to hold digital training classes for members of retiree communities as part of their community service. During these classes, they introduce the elderly to digital solutions that can help them in their everyday lives. While bringing the two generations closer together the “Become a Gen NOW grannie!” initiative also provides an alternative volunteer opportunity to students. This has a low entry level but still generates significant value for society and gives students a real sense of achievement. The young participants can also learn a lot because cooperation is a decisive factor in the development of their personality, and helps them build skills like critical thinking, complex problem-solving, creativity, and communication. We support the students in their preparation by providing them with a detailed syllabus and preparatory sessions for which they can register online. The seniors can take a quiz to determine what they need to learn.

In 2020, the program was modified in line with the circumstances of the coronavirus pandemic. We transformed the training classes into online events so as to maintain social distancing and provide safety for the elderly citizens. Innovative solutions, e.g. live video chat using Viber, Messenger and Zoom applications enabled us to create a new online opportunity for retirees to ask questions and for students to transfer their knowledge. Students have also created easy-to-learn online tutorials and e-learning materials that are shared with seniors through online channels. 54 short videos and illustrated guides broken down into eight topics were published on the program’s own website to help reduce the isolation experienced by the elderly citizens staying at home during the quarantine period. The “Become a Gen NOW grannie!” program was rolled out nationwide from 6 November 2019 and now covers several schools and retiree communities in 16 towns. This transformation and the opportunity provided by online training allows anyone to join the initiative from any location. Last year, 730 high-school students were involved in lectures and creating e-learning materials, and the program reached 4 900 pensioners.

Silver age
The COVID-19 coronavirus epidemic is mainly a threat to the older generation, so as a responsible corporate citizen, Magyar Telekom decided not to organize an event in 2020 for the retired colleagues of Magyar Telekom, T-Systems Hungary, and their predecessor organizations.

However, the company kept in touch with members of the group online and maintained contact with a community of nearly 400 people. In 2020, more than 4 500 silver aged people joined the „Become a Gen NOW grannie!” program.

Volunteering 
Magyar Telekom is a large, responsible enterprise employing several thousand 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 impact.

During the Sustainability Strategy, over the past five years nearly 6 000 Telekom colleagues carried out a total of 46 202 hours of volunteer work.

In 2020, the pandemic made it very difficult to continue the previous voluntary activities that required personal participation, but 222 Telekom colleagues still carried out 3 270 hours of volunteer work.

Digitally enabled sustainability

In the situation created by the coronavirus, digital services have become the determining elements of everyday work, or even the quality of life and family relationships. Telekom therefore focused in 2020 to use its own tools to help customers adapt to the changed circumstances as easily as possible.

The company provides residential and business mobile customers with free extra data for work, orientation and family contact, and cooperation in case someone does not go into work or cannot go out into the community owing to a personal contact with their family.

Magyar Telekom has expanded discounts available in the current epidemic situation:

  • Free fixed line calls for the elderly in May 2020
  • One thousand free mobile minutes for General Practitioners in May 2020
  • New data options at a discounted price
  • 10 GB + 10 GB of extra data free of charge at the beginning of the pandemic
  • Digital education is supported since going to several training sites does not reduce the data included in the majority of Telekom’s mobile Internet tariffs
  • Students in high-school education and their families were able to use fixed-line Internet services free-of-charge for 2x30 days (November-December, 2020). Telekom helps those in need with donations

Magyar Telekom donated laptops and tablets worth HUF 8.9 million to Unicef. The purpose of the donation is to help children in need who miss out on digital education due to lack of resources in the event of an epidemic.

T-Systems Hungary donated the sum of HUF 5 million to the Foundation for the Patients, Doctors and Workers of the Unified St. István and St. László Hospital in order to support the South Pest Hospital Centre caring for severely ill COVID-19 patients and also helped the Hungarian Interchurch Aid with a donation of HUF 4 million to continue their charity programs during the COVID-19 pandemic.

Diversity and inclusion

In 2020, we followed the key points of our Diversity and Inclusion Plan, and worked on the renewal of our related processes, together with the improvement of our corporate culture and access to D&I resources. The company’s fourth Equal Opportunities Plan covers the guidelines, policies and actions for the period 2016-2020. The report on the results of the Plan was accepted by the Central Workers Council at the end of 2020.

Key results and developments in 2020:

Closing the gap
As a responsible company, we are aware of the social phenomenon of the gender pay gap and we are committed to eliminating its root causes within our own business environment. In July 2020, we conducted a complex gender pay gap analysis, during which we defined an equal opportunities action plan to reduce the possibilities of inequalities such as the ‘motherhood penalty’ and the female career gap.

We are continuing to experience the actual business benefits engendered by the advancement of corporate diversity culture. From May 2020, we have achieved a balanced 50 percent gender ratio in our senior management for the first time in the company’s history. As we have not reached the 30 percent target for total management, we will continue to work toward increasing female representation in management positions. In September 2020, we introduced a quota for inclusion of at least two qualified female candidates on shortlists for all management-level positions. 

Renewed parental leave and return assistance
Another major step toward retention of the female workforce was the development of a new process for parental leave and return to work. The key points of this process are assisted preparation for the parental leave period, development of stay-in-contact channels, and a back-to-work scheme. Colleagues are provided with a step-by-step guide leading them throughout the process. It is designed to provide support in terms of information about employee and family benefits and the official preparation process for parental leave. The process also has a strong career-planning feature, encouraging employees to plan their parental leave and return period.

Since staying at home for multiple years could make it very difficult to return to work, we have introduced a strong career-planning feature, a back-to-work assistance scheme, and a stay-in-touch connection package. One element of the latter is complete access to the employee development and education portfolio throughout the entire period of parental leave.

Unconscious bias e-learning for all
We took a bold step forward in terms of our corporate culture when we realized how everyday unconscious bias affects our decision-making processes and paves the way for unintended discrimination within our working environment. While looking for the best learning materials to educate our employees, we found that English language discourse and the e-learning background material was not engaging our local employee audience. They could not identify with the most common biased workplace situations and they found these global examples were too far removed from their own daily experiences.

We therefore decided to create our own unconscious bias training module, adapting the concept and its background to the context of the Hungarian cultural and business environment. As a result, we have developed the first Hungarian language unconscious bias e-learning material and made it a mandatory course for all employees in the Magyar Telekom Group. The material also became part of the onboarding and leadership development process. The course is published as an open-source Hungarian unconscious bias e-learning module and it is available free of charge for use by all local companies in support of similar efforts on their part. Experts at Magyar Telekom supported integration in mainstream business practice at Hungarian companies.

Safe space for all
We launched our Diversity@Telekom Intranet site on World Diversity Day in order to provide a comprehensive information platform and guidance for employees from all backgrounds. Our aim was to provide a safe space for all by sharing resources about our involvement in topics ranging from Roma integration all the way to accessible employment and customer service. We have developed an LGBTQ+ support space that is equipped with a detailed guide to the available benefit schemes for rainbow families, transition support, whistleblowing, and communities. In parallel with the Budapest Pride Festival 2020, Telekom created its LGBTQ+ employee community and the first event was held online. During the Festival, Telekom Video Library offered a selection of thematic movies.

Tackling health and safety issues caused by the COVID-19 pandemic
Since the beginning of the first wave of the epidemic, about 80 percent of our employees have switched to 100 percent telework. In the case of positions that did not allow remote working, such as colleagues involved in network setup or troubleshooting technology units and front-end customer service professionals, we have secured uninterrupted service by providing our employees with equipment and working conditions that meet the requirements of government health and safety rules.

Colleagues who are working parents with children under the age of 14 were provided with an absence supplement if they were unable to organize adequate daycare after schools closed. We also speeded up the processing of corporate emergency assistance and salary advance request applications. At the beginning of April 2020, following an initiative and financial contributions from the Leadership Squad, CEO Tibor Rékasi took personal responsibility and funded the Magenta Alliance Foundation in support of employees facing financial insecurity due to the pandemic crisis. The Foundation is open for applications and accepts donations from all Magyar Telekom and T-Systems employees. By the end of 2020, nearly HUF 5.7 million in donations had been raised through employee donations.