Royal KPN NV · EURONEXT:KPN
Royal KPN NV — ESG Presentation (December 2021)
30 slides from Royal KPN NV's sustainability presentation, Dec 14, 2021
Slide 1: KPN ESG Webinar 2021
KPN ESG Webinar 2021 14 December 2021
Slide 2: Highlights
Highlights ESG fully embedded in strategy and organization Continuously recognized by leading ESG benchmarks Enabling sustainability through connectivity Sustainable investments drive Dutch digitalization Strong progress & ambitious targets on reducing carbon footprint Integrated sustainability into
Slide 3: Strategic Framework: connect the Netherlands to a sustainable future
Strategic Framework: connect the Netherlands to a sustainable future Value we create for …with long-term stakeholders… impact on society Employee value • Employment and Secure, future-proof Purpose employability for KPN connectivity We go all out to connect everyone in the workforce Netherlands to a
Slide 4: ESG fully embedded in strategy and organization
ESG fully embedded in strategy and organization 17 UN Sustainable Development Goals (SDGs) Industry, innovation & infrastructure Secure future-proof infrastructure Sustainable cities & communities Energy Social Responsible consumption efficiency & digital & production & circularity inclusion 4 ESG W
Slide 5: Organizational alignment: ESG integral part of management remuneration
Organizational alignment: ESG integral part of management remuneration ESG themes defined and approved by Board of BoM Management, including ambitions Responsible for overall reporting, approach and CSR cohesion Dedicated cross functional teams, assigned by Themes BoM on topics like innovation
Slide 6: ESG milestones and ambitions: aiming for net zero emissions by 2040
ESG milestones and ambitions: aiming for net zero emissions by 2040 Important milestones crossed… …and an ambitious agenda >30% women All new cars Management Carbon neutral in senior use non-fossil Climate neutral incentivized for own operations management fuel without offsets 2011 2015 2023 202
Slide 7: Enhancing impact through collaboration and standardization
Enhancing impact through collaboration and standardization 7 ESG Webinar 2021
Slide 8: Well ranked in most important sustainability ratings
Well ranked in most important sustainability ratings Telco MSCI ratings: KPN AAA Tele2 AAA Telia AAA Telenor AAA 10 BT AA Elisa AA Orange AA Swisscom AA Telefónica Deutschland Vodafone AA AA years Cellnex Inwit A A in a row Telefónica A Deutsche Telekom BBB OTE BBB Proximus BBB Telecom Italia BBB Un
Slide 9: Innovation focus: enabling sustainability through connectivity
Innovation focus: enabling sustainability through connectivity Leverage and expand superior network Safeguard privacy & security and foster innovation 9 ESG Webinar 2021
Slide 10: Expand superior network: covering the Netherlands through fiber
Expand superior network: covering the Netherlands through fiber Ambition to cover the Netherlands through fiber Exponential data growth over the years ~80% homes passed as % of total NL households Leader in digitalization of the Netherlands; fiber rollout accelerated Fiber is fast, reliable and su
Slide 11: Best mobile network and fastest 5G in the Netherlands
Best mobile network and fastest 5G in the Netherlands Excellent 5G position Differentiated Ookla awards Best mobile network Highest download speed 5G services Leading Best mobile network 5G ecosystem and Fastest 5G Highest upload speed Leading in Security in the Netherlands Best coverage Track recor
Slide 12: Supporting businesses and Dutch society towards cyber resilience
Supporting businesses and Dutch society towards cyber resilience Joining forces with Europol, FBI, Public prosecution service and police Part of CSR (Cyber Security Council) and Largest CIP (Centre for Information Security and Privacy Protection) Educating governmental bodies, companies Security pro
Slide 13: Bringing innovation closer to the business
Bringing innovation closer to the business PIM TAAF Home Office PiM app Health Exchange Hybrid working package App that enables people to SaaS platform enabling offers same secure digital provide proof of identity in a secure data exchange working experience at home simple way, while personal betwee
Slide 14: Society focus: provide internet access for everyone and everything
Society focus: provide internet access for everyone and everything Promote diversity & inclusion Connecting the Netherlands 14 ESG Webinar 2021
Slide 15: Promote diversity & inclusion
Promote diversity & inclusion Gender Diversity • Achieved: Board of Management and Supervisory Inclusion included in purpose: Board currently consist of 1/3 female members We go all out to connect everyone to a • Ambition: >30% women at and above scale 12 by 2023 sustainable future We do this with a
Slide 16: At the heart of society: connecting the Netherlands
At the heart of society: connecting the Netherlands KPN KlasseContact project Arts & Culture Connecting chronically ill children Rijksmuseum KPN Klasgenoot Royal Concertgebouw Depot Boijmans van Beuningen 16 ESG Webinar 2021
Slide 17: Environmental focus: connecting the Netherlands to a sustainable future
Environmental focus: connecting the Netherlands to a sustainable future Advance circularity Reduce energy consumption & carbon footprint 17 ESG Webinar 2021
Slide 18: How we do business: committed to a circular economy
How we do business: committed to a circular economy Supplier engagement and Code of Conduct external benchmarking • Suppliers need to comply • JAC (supplier risk mitigation) with KPN Code of Conduct or • Ecovadis Scorecard have own equivalent Code of Conduct Recycling Recycling Design • New recyclin
Slide 19: Example product circularity report: Fairphone 3
Example product circularity report: Fairphone 3 Fairphone consciously chooses Fairphone 3 designed for disassembly, to source Fairtrade Certified considering refurbish program and Gold to actively improve highly 73% materials used in high levels of product reuse and polluting and dangerous Fairphone
Slide 20: Where do we go from here?
Where do we go from here?
Slide 21: Energy consumption decreasing, data traffic increasing exponentially
Energy consumption decreasing, data traffic increasing exponentially Energy consumption (PJ) compared to data communication growth (%) Data usage increased 21-fold while 4.0 2,200% energy consumption reduced 37% 2,000% in 2020 compared to 2010 Data communication growth (%) compared to base year 2010
Slide 22: Carbon footprint
Carbon footprint in kTon 26 Scope 1 – Direct emissions Scope 1 • Gross emissions, relating to fuel consumption car fleet and 17 heating buildings 295 Scope 2 – Indirect emissions Scope 2 • Location based emissions, relating to usage of electricity of 274 fixed and mobile network, offices and shops 8
Slide 23: Key drivers to lower emissions (scope 1 & 2)
Key drivers to lower emissions (scope 1 & 2) Scope 1 emissions (in kTon) . Scope 1 & 2 emissions <25% KPN total emissions -71% 59 Climate-neutral for own operations since 2015 26 17 Target Non-fossil fuel car fleet without compensation in 2030 (scope 1) 2010 2019 2020 Long-term target to main
Slide 24: Key drivers to lower emissions (scope 3)
Key drivers to lower emissions (scope 3) Roadmap scope 3 reduction (in kTon) . Scope 3 emissions ~75% KPN’s total emissions -17% -20% -30% -50% 1,063 Target Reduce absolute scope 3 emissions by 20% by 2025, 30% by 898 886 2030 and 50% by 2040 against a 2014 baseline 851 744 ~65% 532 How? >50% E
Slide 25: CSR & Financing
Content 1. The world around us 2. KPN’s Strategy & Sustainability Approach 3. Environmental focus (SDG 12) 4. Innovation focus (SDG 9) 5. Society focus (SDG 11) 6. CSR & Financing CSR & Financing 7. Summary 8. Appendix 25 ESG Webinar 2021
Slide 26: Integrated sustainability into core financing instruments
Integrated sustainability into core financing instruments KPN’s Sustainability-Linked Finance Sustainability-Linked Sustainability-Linked Framework aligned with Revolving Credit facility Finance Framework Aug 2021, issue € 1bn revolving credit Nov 2021, issue € 700m SLB Sustainability Coupon 0
Slide 27: Key Messages
Key Messages
Slide 28: Key messages
Key messages ESG fully embedded in strategy and organization Continuously recognized by leading ESG benchmarks Enabling sustainability through connectivity Sustainable investments drive Dutch digitalization Strong progress & ambitious targets on reducing carbon footprint Integrated sustainability in
Slide 29: Safe harbor
Safe harbor Alternativeperformancemeasuresand managementestimates This financial report contains a number of alternative performance measures (non-GAAP figures) to provide readers with additional financial information that is regularly reviewed by management, such as EBITDA and Free Cash Flow (‘FCF’
Slide 30: Thank you
Thank you