Hrvatski Telekom's sustainability strategy reflects the ambition of the entire HT Group to be a digital and sustainable telecommunications company focused on creating value for all stakeholders - customers, employees, shareholders, partners, and society as a whole. A long-term vision of sustainability is an integral part of our business strategy with aim of delivering sustainable and profitable growth by connecting everyone in Croatia with the opportunities of digitization.
As a socially responsible company, we integrate and systematically implement all three dimensions of ESG in our everyday business operations and strategic decision making. Our approach to sustainability is based on three key action areas: climate change, resource efficiency and digital inclusion, and we are focused on efficiently using energy resources, eliminating GHG emissions and creating a better future for everyone.
We have set ambitious goals in the fight against climate change, with initiatives in place aiming to increase circularity and our positive impact on the society. These goals do not only concern our business and activities, but they also include all our stakeholders. Business outcomes are attained through the acknowledgment and embodiment of collective principles that mirror the company's core values. The Guiding Principles are not only statements and guidelines but serve as an essential component of assessing the work performance of HT Group as a responsible and sustainable company, as well as the performance of all our employees. We aim to instil and strengthen the sense of responsibility that permeates all aspects of our business among all members of HT Group and partner companies. Achievement of these objectives is facilitated through our Code of Conduct and Supplier Code of Conduct. These codes not only guide ethical behaviour but also represent the foundation for our Compliance Management System, ensuring that our business activities are aligned with the highest corporate responsibility standards and the best business and ethical practices. As part of Deutsche Telekom Group, we are closely working together with suppliers to assess and enhance the sustainability of the whole supply chain, taking into account our environmental impact. We are committed not only to minimize adverse impacts of our operations on the environment through responsible business practices but also to take a central role in shaping a modern digital society by overcoming the digital divide and creating a safe and tolerant digital world with unlimited opportunities available to all.
The integration of the sustainability strategy into business operations and its effectiveness in achieving desired social and environmental impacts will be achieved through a series of constant management process improvements. Among the most important are sustainability management and reporting according to the new European Sustainability Reporting Standards (ESRS), increased investments in sustainable activities, procurement and supply of sustainable products and services.
Climate change
The ongoing changes in our climate and the unsustainable utilization of natural resources pose significant threats to both the ecosystems and humanity in general. Digitalization has the potential to accelerate the necessary transformation towards a more sustainable future and alter the course of present developments for the better. Recognizing the urgency of this situation, we have already incorporated climate commitments into our corporate strategy.
The science-based climate targets for reducing greenhouse gas emissions are a collective commitment embraced by all members of the DT Group. These targets are seamlessly aligned with the goals of the European Green Deal and adhere to the guidance provided by the Science Based Targets initiative (SBTi).
Our key environmental targets and milestones are:
- Reducing direct and indirect emissions to net zero (Scope 1-2) by 2025;
- Reducing Scope 1, 2 and 3 GHG emissions by 55% by 2030 (with baseline year being 2020);
- Becoming a climate neutral company by total reduction of our carbon footprint (Scope 1-3) by 2040.
Our strategy encompasses both our responsibility to take decisive action to mitigate our negative footprint and business opportunities to help our customers reduce theirs. An evaluation of our total value chain emissions reveals that the majority of emissions originates from our supply chain. Collaborating closely with our suppliers to facilitate their transition to a low-carbon economy plays a pivotal role in achieving our climate objectives.
In terms of our environmental goals, we have already, since beginning of 2021 reached the first one - running 100% on electricity from renewable sources. In 2023 we have reached another important milestone in our energy transition by concluding a ten-year Virtual Power Purchase Agreement (vPPA) concerning the supply of electricity from renewable sources, covering thereby a substantial volume of our energy demands in the future with 100% renewable energy. This confirmed our dedication to responsibly and proactively leading Hrvatski Telekom on its journey towards a sustainable future.
Resource efficiency
In addition to climate change, the availability of resources within a linear economic model is a growing challenge for businesses. In response, circular economy business models present more sustainable approaches to conducting business. We holistically approach responsible use of resources and the application of circular economy principles and strategically, proactively, and preventively strive to reduce waste production through the maintenance, repair, refurbishment, reuse, and environmentally responsible recycling of equipment and materials. Especially waste generated during the construction, replacement, and modernization of our network infrastructure. Our ambition is to achieve full circularity around technology and devices along the whole value chain. In that respect, we employ diverse approaches and offerings to enable circular business models.
When it comes to waste management, majority of waste generated from our operations occurs during the modernization of our network infrastructure. To effectively manage and minimize this waste, we apply the “Prevent – Reduce – Reuse and Recycle” approach, which has enabled us to eliminate waste sent to landfills for several years now. At workstations in offices, stores and data centres, special attention is given to responsible use of resources and increasing the use of sustainable materials. In regard to suppliers and customers, targets have been set and initiatives implemented for more sustainable procurement and use of our products and telecommunications network infrastructure. The goal in this aspect is to make products and materials that are part of our service packages as durable as possible and to ensure the proper disposal and recycling of valuable raw materials at the end of their lifecycle.
All our T-products come in sustainable packaging and for the rest of our portfolio we are collaborating with business partners to increase the share of total products with sustainable packaging in our entire portfolio.
Inclusion with focus on digital inclusion
The social component of our sustainability strategy centres on our relationships with employees, customers, suppliers, and community. We aim to drive our positive impact on society by connecting everyone in Croatia to the opportunities of digitization, promoting diversity, equity, inclusion and building a better tomorrow.
Inclusion of all, where everybody in the company feels respected and involved is one of the key pillars of our sustainability strategy. We are seamlessly integrating the core value of inclusion into our organizational DNA, evident from our ratio of 40% of female leaders and a merit-driven approach to development and career growth opportunities where everybody has equal opportunities.
Digital inclusion specifically reflects our belief that digital technology has the power to improve lives and drive positive change. By fostering inclusivity and decreasing the digital gap, we aim to create a more equitable and connected world for everyone.
Three fundamental factors underpin the goal of providing equal access to digitalization for all members of society: the availability of a high-speed network, affordability of services and devices, and the development and promotion of digital competence. HT Group is dedicated to addressing the technical aspects of broadband access, ensuring the availability of accessible devices and services for everyone, regardless of their financial status or digital literacy. Concurrently, we have designed and are implementing a series of programs and initiatives providing state-of-the-art education to all age groups, from kids to the elderly, helping them acquire and develop the necessary digital skill set, ensuring they have access to necessary equipment, and in the process we are ultimately striving to contribute to the society devoid of digital disparities. Our mission is to ensure that all people have equal opportunities and are included in the digital society so that no one is left behind in the digital world.
We are cautiously monitoring societal needs and the requirements of our community and designing various programs and activities to cater to specific needs which then facilitate an increase the number of individuals and organizations benefiting from our socially responsible engagement.
By being the best team in the industry allows us to be the best partner
We recognize that the key to our success lies in the satisfaction and motivation of our employees. Consequently, we nurture relationships with our employees based on respect and responsibility that drive long-term high performance. Employee opinions are valued, needs are attentively monitored, and efforts are made to ensure high level of engagement of all our employees, which positively reflects on our status as a highly desirable employer that is continuously growing.
As a Group, we are committed to creating a working environment where every individual can realize its full potential, and to fostering an environment characterized by equal opportunities, inclusivity, and a steadfast intolerance for any form of discrimination. This commitment is actualized through the implementation of Guiding Principles, a transparent process encompassing hiring, career advancement work dynamics including flexible working schemes, as well as various protocols ensuring high employee' rights. We acknowledge the significance of diversity in the corporate sphere and consider it a fundamental value of our society. Therefore, we strive to further increase diversity at all levels of our organisation.
Our main strategic priorities are:
- Overcoming the digital divide, creating a digital safe and tolerant world for everyone;
- Being an employer of choice, promoting diversity, equity and inclusion and investing in the development of future skills;
- Promoting equal opportunities and cultivating a safe and supportive environment.
Inclusive workplace KPIs:
- Keep ratio of Female Management at a minimum of 40%;
- Increasing number of employees with disabilities;
- High level of perception of workplace inclusiveness measured through a regular employee satisfaction survey.
Governance
Sustainability and responsibility form an integral part of our governance approach. Foundation of our good corporate governance means applying the highest business standards, exemplary corporate governance practices. Integrity, ethical conduct, safeguarding data protection and security, fostering a comprehensive corporate compliance and risk management system, embracing the core tenets of digital responsibility, upholding human rights, shaping sustainable supply chains, and maintaining transparent communication about our environmental and social sustainability activities are all essential core elements of our daily operations.
As a digitization leader we are constantly raising the bar and setting new, increasingly ambitious industry standards, encouraging the development of a knowledge society, opening the doors of new opportunities to individuals, business, and society all the while guided by the highest ethical standards which are embedded in our corporate culture.
Corporate Responsibility Policy is a basis for HT Group' companies to define, implement, keep track of, and further develop the corporate responsibility practices, meeting all regulatory and other and requirements associated with the Group.
Our cohesive corporate governance framework, well-defined guidelines and policies, and sustainability targets linked to remuneration collectively reinforce the implementation of our overarching corporate responsibility strategy across the Group. We maintain a uniform approach to navigating the risks and opportunities inherent in our commercial endeavours, utilizing key performance indicators consistently to track our advancements, and communicating them transparently.
Sustainability and sustainable development are a crucial part of our corporate strategy and are deeply embedded in our company, driving our decision making. For us sustainability is more than reaching our ambitious targets. It is about making a difference, creating the opportunities for economic development and social progress, us doing our part in building a sustainable future for everybody.
Testament to Hrvatski Telekom driving the sustainability agenda are the domestic and international recognitions and awards ranging from sustainable leadership, exemplary corporate governance, adhering to the highest ethical standards, best social responsibility practices to creating value for shareholders and society. All these serve as additional motivation for us to continue improving.