Corporate responsibility governance and implementation

Corporate responsibility governance and implementation

Incorporation in the strategy

The Board of Directors of Swisscom is committed to pursuing a strategy geared towards sustainability. The Board addresses the relevant economic, environmental and social issues in plenary sessions. The implementation of the strategy is delegated to the CEO of Swisscom Ltd. The CEO can transfer powers and responsibilities to subordinate units and is supported in operational management by the members of the Group Executive Board.

The Group Communications & Responsibility division (GCR) is responsible for the implementation of the CR strategy.

Responsibility of the Board of Directors

The Board of Directors approves the long-term CR strategy. It acknowledged this governance report, the targets for 2015 and the long-term CR targets for 2020 and approved the strategic priorities. The Board of Directors is informed in quarterly reports on the implementation status of the CR strategy and the achievement of targets. It also decides whether the scope of the CR strategy should be expanded – for example to include domestic and foreign subsidiaries.

Responsibility of the Group Executive Board

The Group Executive Board convenes once a year to discuss the further development of the CR strategy and four times a year to discuss its implementation. In November, it reviews the past year and approves the goals for the coming year.

The Group Executive Board has the following controlling instruments at its disposal, which were introduced in 2010:

• Weekly reports prepared by Group Communications & Responsibility, with information on measures and the project status
• Quarterly reports, with information on the key performance indicators based on the priorities of the CR strategy
• Quarterly reports drawn up by Risk Management

Group Executive Board members have been named as internal sponsors for the priorities of the CR strategy. They are responsible for progress and performance within their respective priority areas. The areas of responsibility are aligned to the core tasks of the respective Group Executive Board members and defined as follows:

• Overall management: Head of Group Communications & Responsibility
• Energy efficiency and climate protection: Head of IT, Network & Innovation and CFO Swisscom Ltd
• Work-life balance: Head of Residential Customers, Head of Small and Medium-Sized Enterprises and Head of Corporate Business
• Media skills: Head of Residential Customers
• Attractive employer: Head of Group Human Resources
• Fair supply chain: Head of Group Business Steering (CFO)
• Networked Switzerland: Head of IT, Network & Innovation

Defining areas of responsibility ensures that the priority areas are binding and firmly embedded in the company.

Role of Group Communications & Responsibility

The Group Communications & Responsibility division or, more specifically, the Corporate Responsibility (CR) team attached to this division is responsible for coordinating the implementation of the CR strategy and leveraging synergies across all divisions. The CR team’s specific tasks include:

• Drawing up the CR strategy (goals/priorities) in conjunction with line and support units
• Supporting the sponsors from the Group Executive Board
• Coordinating the implementation of the strategy and the initiation of measures
• Formulating the requirements for the implementation of the CR strategy
• Engaging in dialogue with stakeholder groups
• Engaging in dialogue with strategic partners (including NGOs)
• Reporting to internal and external stakeholder groups
• Liaising with the Group Business Steering division for the purpose of sustainability reporting and drawing up the Annual Report

Line units and the corporate responsibility network

Depending on the strategic priority in question, CR measures are implemented either by project teams or line units. Additional management members are also designated in each division and these persons are responsible for engaging with the measures at an operational level in close collaboration with the CR team. An event is held at least once a year for all of the members of the CR network for the purpose of exchanging information and exploring new issues.

Members of the Group Executive Board and their responsibilities

The diagram below illustrates the role of members of the Group Executive Board and the Management Board in providing support and advice to the line units.