corporate social responsibility
Transcription
corporate social responsibility
CORPORATE SOCIAL RESPONSIBILITY 2011–2012 | ABOVE Gilbert Silva, an employee from DIRECTV’s Azusa, Calif. Home Services site, helps beautify a middle school. | PREVIOUS PAGE Employees volunteer at a school during the DIRECTV Southern California Week of Service in 2012. | INSIDE BACK COVER Employees volunteer together at a Southern California school. Photo credit: Jessica Sterling. Table of Contents (Click on any section to review the content) 5 11 47 67 | Employees at a school beautification volunteer project in San Juan Capistrano, Calif. Photo credit: Jessica Sterling. OVERVIEW 07 Message from the CEO 08 About this Report 09 What We Believe CORPORATE CITIZENSHIP 12 14 24 38 40 Supporting Our Communities K-12 Education Volunteerism Disaster Relief Employee and Community Engagement SUSTAINABILITY 48 50 52 59 60 64 66 DIRECTV’s Commitment to Sustainability Energy-Efficient Products Greenhouse Gas Emissions Consumer Recycling Waste Recognition ECO DIRECTV in Latin America OUR PEOPLE 68 69 70 71 72 74 76 78 Creating an Innovative Workplace Diversity by the Numbers Hiring Our Heroes Building Our Future Workforce Developing Our Workforce Employee Resource Groups Recognition for Diversity and Inclusion Supporting Diverse Communities 79 Global Reporting Initiative (GRI) Index OVERVIEW OVERVIEW | DIRECTV dealers, employees and business partners built a 10,000-square-foot playground in New Orleans in 2011. 4 5 OVERVIEW Message from the CEO In this report, you’ll learn about DIRECTV’s commitment to enriching education with our corporate citizenship efforts, and how we’ve developed programs and initiatives in the U.S. and Latin America to help provide quality education to the next generation of talent. You’ll also find information about the many ways DIRECTV has made environmental sustainability a priority, and the goals we’re working toward in our longer journey to be an even more sustainable business. Our diverse and talented workforce has come together from across the organization and across the Americas to help DIRECTV be a good corporate citizen and a good environmental steward. This report also highlights many of the steps we took in 2011 and 2012 to develop our talent, and recruit and retain employees with diverse backgrounds, ideas and experiences. We know we need this talent now and in the future if we want to continue to evolve the video entertainment experience for our customers in a way that supports the sustainability of our communities and our planet. At DIRECTV, we’re passionate about delivering the best. We strive to deliver the best video entertainment experience and the best customer experience for our more than 35 million subscribers in the U.S. and Latin America. But we don’t stop there. We’re committed to giving our best to the community, the environment and our diversely talented employees. Starting in 2011, I made stepping up our corporate social responsibility efforts a company goal for DIRECTV. Since then, our efforts to be a socially responsible company have continued to grow. I’m pleased to share this 2011-2012 Corporate Social Responsibility report, which highlights our team’s efforts to give back to the community, develop sustainable business solutions that benefit the environment, and foster a culture of diversity and inclusion. 6 | ABOVE Employees beautify Westside Global Awareness Magnet, a public K-8 charter school in Los Angeles. Photo credit: Jessica Sterling. | RIGHT DIRECTV Chairman, President and CEO Mike White painting a planet as part of this solar system mural. Photo credit: Jessica Sterling. We aspire to be a truly sustainable, enduring, world-class enterprise. We recognize that to have a thriving business, we need to be a contributing member of a thriving society. Based on this principle, we’ve created a corporate social responsibility strategy that leverages our team’s core values—leadership, innovation, decisiveness, agility, teamwork and integrity—to give back in meaningful ways. I’m proud of what we accomplished in 2011 and 2012, but I also recognize that we can do more. We’ve become the world’s most popular pay-TV provider by enlisting the most talented team to work together to innovate in a complex world. We need to continue to put this same dedication, and this same leadership, into our efforts to build a responsible company that is part of a sustainable community. We’re committed to doing just this, and I look forward to sharing more updates in the future about our corporate social responsibility efforts. Best Regards, Mike White Chairman, President and CEO DIRECTV 7 This 2011-2012 DIRECTV Corporate Social Responsibility report provides a high-level overview of how we are delivering on our Corporate Citizenship, Sustainability and Diversity and Inclusion commitments. The report includes information about our efforts to give back to the communities where our employees live and work, our sustainable business practices, and the ways we foster a diverse and inclusive workplace culture to deliver a superior customer experience. GLOBAL REPORTING INITIATIVE We prepared this report in accordance with the Global Reporting Initiative’s (GRI) G3.1 guidelines. The GRI provides a framework to transparently report on economic, environmental, social and governance performance. While we are not formally declaring an application level this year, an index of GRI performance indicators that we reported against for our U.S. operations only can be found at the end of this report on page 79. Although this report discusses key programs managed by DIRECTV’s operations in the U.S. and Latin America, we are only reporting alignment with GRI for our U.S. operations. We aim to include additional operations and performance indicators in the future as material topics are identified and verifiable data collection mechanisms are put in place. ABOUT DIRECTV DIRECTV is one of the world’s leading providers of digital television entertainment services, delivering a premium video experience through state-of-the-art technology, unmatched programming, and industry-leading customer service to more than 35 million customers in the U.S. and Latin America. REPORT SCOPE This report is focused on DIRECTV’s efforts in 2011 and 2012 in the U.S. and Latin America. Within the report, readers will find significant strategies, programs and U.S. performance indicators related to DIRECTV’s Corporate Citizenship, Sustainability and Diversity and Inclusion work. We will continue identifying and gathering information on issues that are most relevant and material to our company and we plan to expand our reports in the future. LLP to provide a moderate level of assurance over our 2011 and 2012 U.S. carbon footprints. We made every effort to ensure the information presented is accurate and complete. DIRECTV verified information presented in this report following an established internal review process. Further, DIRECTV engaged Deloitte & Touche, All financial figures are quoted in U.S. dollars unless noted otherwise. Terms such as DIRECTV, the company, we, our and us are used interchangeably to refer to DIRECTV operations. We have not solicited stakeholder engagement on this report at this time, but regularly engage with, and solicit input from, key company stakeholders. These include employees, customers, regulators and policy makers, community partners and nonprofits, and others who have a stake in our success. 35 MILLION CUSTOMERS IN THE U.S. AND LATIN AMERICA What We Believe OVERVIEW ABOUT THIS REPORT Our vision is to provide customers with the best video entertainment experience both inside and outside the home by offering them unique, differentiated and compelling programming through leadership in content, technology and customer service. We aspire to be a truly sustainable, enduring enterprise. Because a thriving company can only succeed in a thriving society, it is important that we deliver on the following fundamental responsibilities: 1. Corporate Citizenship We believe in being a good corporate citizen and championing socially responsible business practices to ensure that we are the kind of organization our communities are proud to call a welcome neighbor. To guide and refine our efforts, we created an executive steering committee in 2010 that continues to sharpen our philanthropic focus today. | Mike White and other volunteers at a 2011 playground build in New Orleans with nonprofit KaBOOM! 2012 DIRECTV COMPANY INFORMATION EMPLOYEES More than 29,000 (U.S. and Latin America combined) 2. Sustainability REVENUE $29.7 billion Environmental stewardship is an increasingly important aspect of our business. From our corporate offices to our hardware to our van fleet, the actions we take to conserve energy and reduce waste have an impact on the footprint we create. We formed a sustainability team in 2011 to identify and implement sustainable business practices that also reduce our environmental impact. OPERATING UNITS 3. Diversity and Inclusion We seek to foster an inclusive workplace by attracting and retaining top talent who have a broad spectrum of experiences and perspectives, and who feel comfortable bringing their whole selves and their ideas to work. DIRECTV U.S. | DIRECTV Latin America | DIRECTV Sports Networks SERVICES DIRECTV (DTV) is the world’s leading provider of digital television entertainment services. Through its subsidiaries and affiliated companies in the United States, Brazil, Mexico and other countries in Latin America, DIRECTV provides digital television service to more than 20 million customers in the United States and more than 15 million customers in Latin America. NASDAQ EXCHANGE Ticker symbol: DTV PRINCIPAL OFFICES U.S. LOCATIONS LATIN AMERICA El Segundo, Calif. Buenos Aires, Argentina Lima, Perú Denver, Colo. São Paolo, Brazil San Juan, Puerto Rico New York, N.Y. Santiago, Chile Chaguanas, Trinidad and Tobago Bogotá, Colombia Montevideo, Uruguay Cali, Colombia Caracas, Venezuela Quito, Ecuador | An employee at a school beautification volunteer project in Los Angeles in August 2012. 8 9 CORPORATE CITIZENSHIP CORPORATE CITIZENSHIP | In December 2012, more than 400 Los Angeles-based DIRECTV employees came together to package meals for those suffering from hunger. 10 11 Supporting Our Communities CORPORATE CITIZENSHIP DIRECTV recognizes that we have a responsibility to be a good corporate citizen. With the help of our dedicated employees throughout the Americas, we give back to the communities where our employees live and work through innovative education-focused initiatives, transformative volunteer projects and programs to support our employees’ engagement in the diverse causes they are most passionate about. To guide and refine DIRECTV’s community involvement and charitable giving strategy, an executive steering committee on Corporate Citizenship was formed in 2010. Co-chaired by our Executive Vice President and Chief Human Resources Officer, and Executive Vice President of Legal and General Counsel, this small group of senior leaders meets periodically and has been instrumental in sharpening DIRECTV’s philanthropic focus. We have identified three key areas where we focus our investments to maximize our positive impact on our local communities: 12 K-12 EDUCATION VOLUNTEERISM EMPLOYEE AND COMMUNITY ENGAGEMENT We have identified K-12 education as the social issue that DIRECTV can most positively impact in the U.S. and Latin America. We purposefully channel our resources into school programs and partnerships, and focus on science, technology, engineering and mathematics (STEM) education within K-12 schools, so that today’s students are well positioned to become tomorrow’s workforce. We diversify our community support through volunteerism, and we engage our employees and partners in service projects that impact a wide variety of causes throughout the Americas. This hands-on approach sends one of our most valuable assets—our employees—into the community to partner with resource-constrained organizations to drive change where it is needed most. In 2011 and 2012, our employees contributed more than 40,000 hours, helping others and learning about the issues affecting our communities while developing their teams and building cross-functional relationships. In addition to our core focus on education and volunteerism, a large portion of our charitable giving is employee-driven. We support our employees with the causes they care most about in the communities they call home, with programs including Gift Matching, the DIRECTV System Donation Program and Volunteer Grants in the U.S., and Generación DIRECTV in Latin America. We also engage our employees in supporting their local communities and provide resources and support in the aftermath of natural disasters. | TOP LEFT Volunteers at DIRECTV’s 2012 Southern California Week of Service beautify a school. | TOP RIGHT AND BOTTOM LEFT DIRECTV is a supporter of the Partnership for Los Angeles Schools. Read more on page 20. Photo credit: Jessica Sterling. | BOTTOM RIGHT Volunteers at an environmentally focused volunteer project hosted by the Young Professionals Network in 2012. 13 K-12 Education Joe Bosch Executive Vice President and Chief Human Resources Officer DIRECTV 14 In February 2011, DIRECTV GOES TO SCHOOL® sponsored a special school assembly featuring Nobel Peace Prize Laureate Archbishop Desmond Tutu and 12-time GRAMMY Award winner Herbie Hancock, live for 600 students in Los Angeles and via broadcast to schools across the U.S. During the assembly, Archbishop Tutu spoke about the importance of role models, current civil rights issues and past civil rights leaders, and also about his childhood in South Africa. Our commitment to education spans from charitable giving to signature education programs to strategic partnerships that foster student learning throughout the Americas. DIRECTV GOES TO SCHOOL® Through DIRECTV GOES TO SCHOOL,® our signature education program in the U.S., we provide free programming to K-12 schools and offer special events and content to enhance students’ educational experiences. DIRECTV GOES TO SCHOOL® PROGRAMMING DIRECTV GOES TO SCHOOL® offers accredited K-12 schools in the U.S. complimentary educational programming from DIRECTV, which includes 99 of the best educational, informational and news channels. Educators can use their free DIRECTV system to record and show programs that enhance their classroom instruction. Through this program, DIRECTV contributed more than $11.3 million of in-kind donations to support K-12 schools in 2011 and 2012. In October 2011, DIRECTV partnered with CENTRIC and the Get Schooled Foundation to host a special assembly for 350 students at H.D. Woodson High School in Washington, D.C. Titled “The Music that Made the Movement,” the assembly focused on the music of the Civil Rights Movement, and featured Kaya Henderson, Chancellor of D.C. Public Schools, and musical talent including Big Tigger, Monica, Tyrese and Wale. DIRECTV’s Chairman, President and CEO, Mike White, and Viacom President and CEO, Philippe Dauman, spoke at the assembly about the importance of the Civil Rights Movement and education. CORPORATE CITIZENSHIP “DIRECTV supports K-12 education as our primary area of focus, with special emphasis on science, technology, engineering and math (STEM). We recognize that today’s students are our future workforce and customers, and that a strong educational system is critical for a thriving society.” DIRECTV GOES TO SCHOOL® SPECIAL ASSEMBLIES narrated by Emmy® and Golden Globe® Award winner Martin Sheen and featured perspectives from former U.S. Secretary of State General Colin Powell, Congressman John Lewis (D-Georgia) and sportscaster James Brown. In addition to airing on DIRECTV’s AUDIENCE network, the documentary was aired for the thousands of schools receiving free DIRECTV GOES TO SCHOOL® programming. In partnership with Discovery Education, this program was aligned with McREL Content Knowledge Standards and Benchmarks and was recommended for students in grades 6-12. TM DIRECTV GOES TO SCHOOL® ORIGINAL DOCUMENTARY In 2012, to celebrate the dedication of the Martin Luther King, Jr. Memorial in Washington, D.C., DIRECTV produced More Than A Dream, an original entertainment documentary about the Civil Rights Movement and Dr. Martin Luther King, Jr. The film featured firsthand accounts from civil rights leaders who worked alongside Dr. King and provided a never-before-seen look at the Civil Rights Movement in the U.S. The documentary was Additionally, chaptered segments of the documentary and related classroom lesson plans and activities were provided online at no charge. | TOP DIRECTV produced More Than A Dream, an original documentary about the Civil Rights Movement and Dr. Martin Luther King, Jr., and aired the documentary for thousands of schools receiving free DIRECTV GOES TO SCHOOL® service. | ABOVE Archbishop Desmond Tutu with a student at a DIRECTV-sponsored special assembly at a Los Angeles high school. 15 The ESCUELA+ program combines four key elements: • State-of-the-art technology: DIRECTV Plus® SD DVR recording and other functionalities provide teachers control over content, and DIRECTV’s satellite technology allows the program to reach any school in Latin America. Additionally, DIRECTV Push Video on Demand technology allows educational content to be delivered directly to participating schools. CORPORATE CITIZENSHIP escuelaplus.com DIRECTV Latin America’s signature education initiative, ESCUELA+, impacts and enriches the curricula of primary and secondary schools in Latin America through TV education. The program uses content, specifically designed methodology, technology and teacher training to enrich the classroom experience. Since the program’s inception in 2007, more than 8,000 teachers have been trained and more than 93,000 students have participated. • Exceptional partner educational content and support materials: Content is provided by Discovery, Nat Geo, Microsoft, Fundación TyC, and local Ministries of Education, who are DIRECTV’s partners in the program. • Innovative audio/visual classroom methodology: ESCUELA+ schools are trained to use the program based on the Discovery en la Escuela methodology and are also trained to use DIRECTV’s ESCUELA+ audio/visual technology. • Ongoing communication and engagement: ESCUELA+ offers online communication and registration to increase teacher engagement and participation, periodically follows up with schools on the use of the tools and content, and offers a centralized customer service center in Cali, Colombia for program participants. 16 | ABOVE Orlando Parodi, General Manager of DIRECTV Perú, speaking at an ESCUELA+ training session for teachers through Perú’s Ministry of Education. | TOP AND ABOVE LEFT ESCUELA+ has reached more than 93,000 students. | THIS PAGE, BOTTOM LEFT A teacher in Perú at ESCUELA+ training. | PREVIOUS PAGE Teachers in Lima, Perú get their certificate for ESCUELA+ training. 17 (ESCUELA+ CONTINUED) As of 2012, ESCUELA+ has been deployed in Puerto Rico and five Latin American countries: Argentina, Chile, Colombia, Ecuador and Venezuela. In 2012, ESCUELA+ launched two new programs: ESCUELA+ Correctional, which serves four adult correctional institutions in Puerto Rico, and ESCUELA+ Embassies, which, in partnership with the U.S. State Department and local U.S. Embassies, serves bi-national centers in selected Latin American countries. CORPORATE CITIZENSHIP ESCUELA+ partners developed 10 new programs (documentaries) with didactical support material for distribution during 2012. The official documentary index for ESCUELA+ now offers more than 100 programs. In an official Q4 2012 publication by the Ministry of Education of Chile, ESCUELA+ was recognized for its excellence, technological reach and differentiation, and as an official program serving the rural educational establishments of the country. Additionally, the ESCUELA+ program was recognized in October 2012 during a special panel at the 2012 Global Corporate Citizenship Conference (GCCC) of the American Chamber of Commerce Association in Washington, D.C. 18 19 WAITING FOR SUPERMAN CAMPAIGN Education Programs and Partnerships PARTNERSHIP FOR LOS ANGELES SCHOOLS We believe that parents are a driving force behind a child’s education. We have sponsored the renovation of 14 parent centers since 2008 at schools being operated by the Partnership for Los Angeles Schools, a collaboration between the City of Los Angeles and the Los Angeles Unified School District to improve many of the city’s most underserved and underperforming schools. These parent centers aim to encourage parent involvement in student success, and come outfitted with furniture, computers, a television, and DIRECTV GOES TO SCHOOL® technology and programming. At these centers, parents volunteer on school projects and gain skills and information to support them in their children’s educational experience. Through this campaign, DIRECTV funded 26 science, technology, engineering and mathematics projects for classrooms at schools in states with DIRECTV offices that participate in the DIRECTV GOES TO SCHOOL® program, benefiting 3,908 students (examples to the right). WHITE BOARD MATH WARM UP GOES GREEN PUT US IN OUR PLACE High School Math | San Diego, Calif. Project Cost: $699 Elementary School Math | Tulsa, Okla. Project Cost: $458 A San Diego math teacher requested refillable, environmentally friendly white board markers for his students to complete their daily math warm-ups. “I am overjoyed and ever so thankful for your donation to my project. It is great to see there are companies sharing my dream of making students love math. The refillable white board markers will enable my students to refresh key concepts and cement their grasp of new math concepts. In addition, we will be honoring our commitment to the environment by not adding plastic to the landfills. I can't wait to introduce these tools to my budding mathematicians.” A Tulsa elementary school teacher requested games, hands-on activities and enrichment materials to improve her students’ understanding of place value. “I am beyond thrilled that this project has been funded, and that you found it to be a worthwhile cause. Your contribution is more than funding a learning opportunity. It is an investment in the future of many minds and a contribution toward our country achieving higher mathematical gains. The items purchased with your donation will help develop a greater understanding of basic math fundamentals. The concept of place value is a key element these students will learn and carry on in their future years of learning. Our classroom will benefit greatly from these new learning tools and games.” CORPORATE CITIZENSHIP In February and March of 2011, DIRECTV CINEMA® offered customers a unique way to give back by purchasing Waiting for Superman, a documentary that analyzes the state of public education in the U.S. For every sale of the film, DIRECTV donated 50 cents to DonorsChoose.org, a nonprofit that has pioneered “citizen philanthropy” through its website, where U.S. public school teachers post classroom project requests to which individuals may donate to directly. With 39,186 purchases of the film, the results of this cause marketing campaign more than doubled expectations and raised nearly $20,000 for DonorsChoose.org. In addition to underwriting these parent centers, DIRECTV also sent employees to Partnership school Sunrise Elementary in 2011 and 2012 to lead reading and art lessons. We also selected Partnership school Santee High School as the location for a DIRECTV GOES TO SCHOOL® special assembly featuring Archbishop Desmond Tutu (see page 15). Moving forward, DIRECTV will continue to expand its work with the Partnership for Los Angeles Schools. In 2013, we plan to make a $200,000 commitment to fund math technology and programs for the Partnership. Additionally, employee volunteers will continue to support the Partnership. For example, more than 200 employees will clean up and beautify Jordan High School in February 2013. | TOP IT employees read to students at Sunrise Elementary in Los Angeles on Halloween in 2012. | ABOVE AND RIGHT Elementary school students at a Partnership for Los Angeles Schools campus. Photo credit: Jessica Sterling. 20 21 SAMSUNG SOLVE FOR TOMORROW STEM GRANTS FOR DonorsChoose.org In 2012, DIRECTV granted $150,000 to DonorsChoose.org through two special campaigns to fund science, technology, engineering and math (STEM) classroom projects posted on DonorsChoose.org. Through these campaigns, nearly 30,000 students in 167 classrooms received the materials they needed to learn. These campaigns were conducted via DIRECTV’s Facebook page (facebook.com/directv), and engaged our Facebook fans. For the April 2012 campaign, fans helped select both the grade levels and subjects where funding would be directed. In October 2012, fans shared STEM-related images and DIRECTV donated $1 every time an image was shared, resulting in a $100,000 gift to DonorsChoose.org. DIRECTV contributed more than $230,000 to DonorsChoose.org in 2011 and 2012, and plans to continue the partnership in 2013 with another STEM Grants campaign and additional initiatives to fund critical classroom projects. 22 DIRECTV SCHOLARSHIP PROGRAM In addition to supporting K-12 education in the communities where our employees live and work, we believe in making higher education a real possibility for the children of our employees. In 2011, we launched the DIRECTV Scholarship Program and awarded 100 scholarships of at least $3,000 each. The program continued in 2012, resulting in 200 scholarships awarded to date by DIRECTV to eligible dependent children of employees in the U.S. and Latin America who will attend an accredited two- or fouryear college or university or a vocational/ technical school for the following academic year. Awards in this competitive program are based on financial need, academic merit, and leadership and community involvement. Starting in 2012, five of the 100 scholarship awards were designated as Jarvis Awards, CORPORATE CITIZENSHIP DIRECTV is proud to be a partner of Samsung’s Solve for Tomorrow program, a science, technology, engineering and mathematics contest for schools across the country. In 2011 and 2012, teachers of sixth through twelfth grade classes were invited to create videos with their students to answer the challenge: “How can science or math help improve the environment in your community?” Each year, DIRECTV provided $35,000 in cash prizes for the grand prize winner and nine runners up. Additionally, the grand prize and four first-place winners were offered a complimentary DIRECTV installation for the DIRECTV GOES TO SCHOOL® program. in memory of Greg Jarvis, who was an employee of Hughes, DIRECTV’s former parent company, before becoming an astronaut on the Challenger Space Shuttle that exploded after its launch in 1986. The Jarvis Scholarships are academic merit-based awards for students who will pursue studies in science, technology, engineering or math. The top winner of the Jarvis Awards receives the Jarvis Gold Award and is given a $6,000 scholarship. DIRECTV4SCHOOLS In summer 2012, DIRECTV ended a successful run of its DIRECTV4Schools program, which granted nearly $250,000 to K-12 schools between 2007 and 2012. Through the program, participating schools received a $100 school reward for every new DIRECTV customer that signed up for service with the referring school’s code, and a $50 school reward for every existing DIRECTV customer that renewed their DIRECTV service and provided the school’s code. This program allowed schools to fundraise for special programs, equipment and events. | ABOVE Destini M. Brown, daughter of DIRECTV employee Wanda Jackson, a 2012 DIRECTV Scholarship recipient. | BOTTOM LEFT DIRECTV employee Darcee Alexander (right), whose child won a DIRECTV Scholarship, with Brian Moses, Missoula, Mont. Customer Care site director. | PREVIOUS PAGE TOP DIRECTV supports math education in the Partnership for Los Angeles Schools. Photo credit: Jessica Sterling. | PREVIOUS PAGE BOTTOM An image from a DIRECTV Facebook campaign to donate $100,000 to DonorsChoose.org in fall 2012. 23 Volunteerism | TOP LEFT Employees at a Piedra Papel Tijera project in Peru. | TOP RIGHT An employee at the Piedra Papel Tijera volunteer project to beautify the East Los Angeles Women’s Center in September 2011. | DIRECTV employees at a company-sponsored volunteer project in Los Angeles. 24 CORPORATE CITIZENSHIP Volunteerism is a key part of our work to be a good corporate citizen, and we support our employees in giving back during work time and in their personal time. Through transformative company-sponsored volunteer projects, team building volunteer projects and a volunteer grants program, we’re sending one of our greatest assets —our people—into the community. In 2011 and 2012, our employees across the Americas volunteered more than 40,000 hours with DIRECTV. Piedra Papel Tijera in Latin America Throughout Latin America, DIRECTV’s volunteer initiative Piedra Papel Tijera (Rock Paper Scissors) engages employees to plan and execute transformative volunteer projects. These projects, done in the countries where DIRECTV operates, focus on renovating and beautifying the physical infrastructure of schools and community organizations. Projects have included the renovation of a nursing home serving 300 people in Quito, Ecuador and the beautification of a children’s home in Cali, Colombia, where 140 children with life-threatening conditions live. In 2011, Piedra Papel Tijera visited the U.S. with a threeday project to beautify and renovate the East Los Angeles Women’s Center, and in 2012, New York employees participated in Piedra Papel Tijera by committing three days to beautify University Settlement in Brooklyn. In 2011 and 2012, more than 2,600 employees volunteered more than 21,000 hours to transform 34 community organizations. Since the program began in 2009, nearly 30 percent of DIRECTV Latin America employees have participated in one of 46 projects in 12 countries. In 2012, select Piedra Papel Tijera projects expanded to include DIRECTV customers and employees’ family members. Each volunteer project is filmed and broadcast as an episode of the Piedra Papel Tijera television show, which launched in September 2010 on OnDIRECTV Channel 999 to tell the stories of the organizations we’ve helped and raise awareness for their causes. Since its launch, the television show has become a top 15 show on the channel. In 2012, the show’s third season launched. In three years of broadcast, the program has been watched in 1.3 million homes. 25 2011-2012 PIEDRA PAPEL TIJERA PROJECTS UNITED STATES COLOMBIA 600 Volunteers 5,400 Hours Volunteered 8 Projects CORPORATE CITIZENSHIP 200 Volunteers 1,800 Hours Volunteered 2 Projects PUERTO RICO 50 Volunteers 450 Hours Volunteered 1 Project TRINIDAD AND TOBAGO ECUADOR 408 Volunteers 3,672 Hours Volunteered 4 Projects PERÚ 405 Volunteers 2,466 Hours Volunteered 4 Projects CHILE 190 Volunteers 1,710 Hours Volunteered 3 Projects ARGENTINA | In 2011 and 2012, 34 community organizations were transformed through the Piedra Papel Tijera program. 26 231 Volunteers 2,079 Hours Volunteered 6 Projects 80 Volunteers 720 Hours Volunteered 1 Project VENEZUELA 250 Volunteers 2,250 Hours Volunteered 2 Projects BRAZIL 206 Volunteers 1,854 Hours Volunteered 2 Projects URUGUAY 43 Volunteers 387 Hours Volunteered 1 Project 27 VENEZUELA COLOMBIA URUGUAY A group of volunteers renovated the Asociación Benefactora de Ayuda al Niño sin Asistencia (ABANSA), an organization in Valencia dedicated to prevention against violence and delinquency in Venezuela. In addition to the volunteer renovations, several appliances and a big screen television were donated. Sixty volunteers rebuilt the kindergarten of Niños por un Nuevo Planeta (Children for a New Planet), which provides a safe space for children who are victims of sexual abuse in Bogotá. Through three days and 472 hours of work, volunteers made it possible for the local Department of Social Integration to provide the organization with a license of operation to keep its doors open. In Uruguay, DIRECTV recruited 25% of its employees as volunteers to help Proyecto Botijas, a community space dedicated to education and social assistance that serves more than 100 children and teens each day. In addition to renovating the facility, more than 40 boxes of non-perishable food, supplies, clothes, toys, utensils and cleaning supplies were donated. CORPORATE CITIZENSHIP “Through Generación DIRECTV, our pro-social program in Latin America, we’ve been able to give back in a number of ways. The Piedra Papel Tijera volunteer program is a key part of this, and I’m proud of what our employees have accomplished as they’ve worked together on these projects.” Below are a few examples of transformative projects completed in Latin America through the Piedra Papel Tijera program. Bruce Churchill President, DIRECTV Latin America and New Enterprises “Our Piedra Papel Tijera volunteers work together to give back to the organizations that need us most. I continue to be inspired by the organizations we partner with and the dedication of our employees.” Jacopo Bracco President, DIRECTV PanAmericana | Children benefiting from a Piedra Papel Tijera project in Peru in 2012. 28 29 “The help DIRECTV gave us allowed us to re-energize and re-focus ourselves. To see that there are people who are willing to help in these charitable and philanthropic efforts makes us extremely thankful. It is not common to see a corporation mobilize its employees in being active social workers; not only with words, but especially with actions.” Etni Salazar Coordinator, ABANSA Valencia Julio González General Coordinator, Proyecto Botijas “When we saw the DIRECTV volunteers arrive at our shelter, we were suffering from a very deep economic crisis and our needs were overwhelming. We had no idea which door to knock on next. Destiny brought you to us. It was a blessing. We are too grateful for all the help and for all the love you gave us.” Damaris Martínez Rodríguez Director, Manitas de Ángel “This is the boldest Piedra Papel Tijera we have ever executed! I can’t believe the miracle work of all the volunteers in our Ecuador operation... to raise a three-story building for the new shelter. Truly, nothing is impossible when hearts and minds and souls are focused as a team to help our fellow man.” Sandro Mesquita Director, Sports Business & Marketing and Generación DIRECTV 30 ECUADOR More than 50 volunteers completed 450 hours of labor to refurbish and remodel Manitas de Ángel, a shelter for homeless children who suffer from disabilities located in Caguas, about an hour and a half from the capital city of San Juan. Volunteers constructed a terrace to serve as a safe play area for the kids. Additionally, DIRECTV donated a power generator for the children of the shelter, many of whom depend on life support equipment. In May 2012, employees in Ecuador completed their fourth Piedra Papel Tijera project and helped 50 children served by Gotitas de Color, a shelter in the capital city of Quito. The shelter assists kids who live in an environment highly vulnerable to poverty and juvenile violence. DIRECTV partnered with the foundation Fundación Honrar la Vida, and 120 volunteers erected a new three-story building to replace the previous shelter over three days, allowing the shelter to help 20 additional children. The facility was designed with new classrooms, bathrooms, decorations, a play area and other additions. BRAZIL “You [DIRECTV] truly surprised us with your capacity to do great work with a great disposition. The home in which we work daily is now bigger and more beautiful! THANK YOU!” Mauricio Guidini CORPORATE CITIZENSHIP “ For us, the help was so needed, especially with the repairs to our physical space. Now the work environment is beautiful and it helps in keeping us motivated in the work we perform here.” PUERTO RICO Finance Director, Casa Dia Coexistir Over three days, more than 101 volunteers from SKY Brasil transformed Casa Dia Coexistir, an organization that provides a safe space and recreation opportunities for more than 40 children between the ages of four and six years of age. Volunteers refurbished the facility, painted, decorated, repurposed rooms, built a library for the three-story building and increased its capacity to host more children. PERÚ In Perú, two Piedra Papel Tijera projects were completed in 2012 in a community two hours from the capital city of Lima. Within this community, DIRECTV volunteers renovated the “Pronoei,” an early education program, and “Cuna Más,” a daycare facility, both of which were operating in extreme poverty. Volunteers built two new structures, including new bathrooms and a playground area for the children. Thanks to the work of approximately 260 volunteers, more than 50 children, ages five and under, have a new place to enrich their education and play in a safe environment. | DIRECTV Latin America employees completed transformational three-day volunteer projects in 10 countries and Puerto Rico in 2011 and 2012. 31 Volunteer Impact in the U.S. COMMUNITY PLAYGROUND BUILDS CORPORATE CITIZENSHIP In 2011 and 2012, DIRECTV led record-setting volunteer projects with nonprofit partner KaBOOM! KaBOOM! is committed to providing all children a safe place to play, and has built more than 2,200 playgrounds across the U.S. DIRECTV helped by building the two largest playgrounds in KaBOOM!’s 16-year history. “The Day of Service at our Revolution Dealer Conference is DIRECTV’s largest annual volunteer effort. For two years running, our dealers, employees and partners have joined community members in building record-setting KaBOOM! playgrounds. Through teamwork and with a strong desire to give back, we’ve created welcoming outdoor spaces that many people will enjoy for years to come.” Tina Morefield Director, Corporate Citizenship NEW ORLEANS In 2011, 700 DIRECTV employees and dealers and New Orleans community members built a nearly 10,000-square-foot playground and renovated a public park in just six hours. Through this event, held in conjunction with DIRECTV’s annual Revolution Dealer Conference, volunteers constructed a state-of-the-art playspace that will serve nearly 40,000 children over the playground’s lifetime. ATLANTA In 2012, DIRECTV partnered with KaBOOM! in Atlanta during the Revolution Dealer Conference to build a more than 10,000square-foot accessible play structure to allow kids of all abilities to play together at Nesbit Elementary School, setting a new record with KaBOOM! for both largest play structure and most volunteers engaged. Over six hours, more than 800 volunteers from DIRECTV and the local community built a playground to serve the more than 1,600 K-5 students who attend the school. “I left with a feeling of accomplishment and came home and wanted to do more. As a group here at Dean's Satellite, we've started a team for a cancer walk fundraiser this summer, made a visit to Joplin, Mo. after the devastating storm, and created a committee to collect and deliver school supplies for children in Joplin. Give back... that's what DIRECTV helped us to realize.” Sonya Pennel Dean’s Satellite, Sparta, Wis. DIRECTV Dealer 32 “Being a part of the KaBOOM! experience was incredible. To be able to give time and energy to help the local community was such a rewarding experience. To see the kids’ faces when we were done was amazing. It makes you proud to be part of a company that encourages its employees to find ways to make the communities we live and work in better.” Rob Dee “Seeing the children and how excited they were for what we were doing to transform their play area made me feel like a superhero that day. We made an amazing playspace come true for the principal and students. It brings tears to my eyes every time I even think about it. I love to make a difference.” Chris Brennick ROCKSTAR Satellite, Des Moines, Iowa DIRECTV Dealer Senior Commercial Area Sales Manager DIRECTV 33 DENVER SCHOOL BEAUTIFICATIONS During summer 2012, more than 150 employees in Denver partnered with Denver Public Schools and the American Heart Association to beautify four public school campuses. Projects included creating and maintaining student and community gardens, landscaping and painting. VOLUNTEERISM AS TEAMBUILDING From July 30 through August 3, 2012, more than 250 Southern California DIRECTV employees worked together to transform three public school campuses. Projects included murals, a school garden transformation, building repairs and facility painting. “DIRECTV’s dedicated core of technicians poured their heart and soul into our campus over the course of an entire week. The commitment and heart of the DIRECTV team members to give back to our community was above and beyond what I have seen in any organization. We are forever grateful for the men and women who volunteered their time to our school, and treated our school, our community and our students as if they were their own.” LOS ANGELES HOLIDAY VOLUNTEER PROJECT In August 2012, nearly 60 employees from DIRECTV’s IT organization volunteered to clean Los Angeles beaches with nonprofit partner Heal the Bay. These beach cleanups are one example of DIRECTV’s commitment to environmentally focused volunteerism. SCHOOL BEAUTIFICATION AT HUMAN RESOURCES CONFERENCE CORPORATE CITIZENSHIP DIRECTV SOUTHERN CALIFORNIA WEEK OF SERVICE DIRECTV teams and departments across the U.S. volunteer together for teambuilding. In 2011 and 2012, employees volunteered at organizations including schools, food banks, after-school programs and housing organizations. Below are just a few examples of the more than 100 teambuilding volunteer projects during this period. BEACH CLEANUPS ON CALIFORNIA COAST In October 2012, nearly 200 DIRECTV Human Resources professionals from across the country and Latin America volunteered at San Juan Elementary, an underserved K-5 school in California that serves more than 700 students each year. Together, these employees beautified the campus with murals, landscaping, cleaning and a revitalized garden. In December 2012, nearly 400 employees from DIRECTV’s Los Angeles work locations volunteered an hour of their time to give back at the holidays and package meals for those suffering from hunger. Working together, employees packaged more than 55,000 meals that were distributed to families in 45 countries. Additionally, a portion of the meals were sent to New York and New Jersey to help those affected by Superstorm Sandy. Hrag Hamalian Head of School, Valor Academy LOS ANGELES REGIONAL FOOD BANK “Being involved with Bright Star made me feel proud to be part of DIRECTV. It was both humbling and rewarding to be with a group of volunteers that showed up to make a difference, because in my heart I felt that we did just that. I would not hesitate to help again.” Mark Ferralles In January and February 2011, 60 employees from DIRECTV’s Risk Management group volunteered to assemble food packages for more than 20,000 seniors and needy families in Los Angeles County. Volunteers worked together to assemble 1,100 food packages. | ABOVE Employees in DIRECTV’s IT organization clean up a local beach. | TOP A Los Angeles employee at the LA Regional Food Bank where she volunteered with her team. | PREVIOUS PAGE DIRECTV employees in Los Angeles and Denver volunteered to beautify a public school. DIRECTV Senior Technical Writer/ SharePoint Administrator 34 35 NEW YORK MENTORING In 2012, DIRECTV joined other leading companies in A Billion + Change, the national campaign inspiring the largest commitment of pro bono services in history. Through this campaign, leading companies have pledged to donate their best talent to tackle tough problems in their communities and around the world. DIRECTV made a two-year pledge for employee skills-based and pro bono volunteer hours valued at nearly $600,000. In the summer of 2012, New York employees hosted 20 high school interns with the New Jersey All Stars Project for three mentor workshops focused on career growth and business skills. This mentorship program is an extension of DIRECTV’s larger partnership with the New Jersey All Stars Project. Here are three of DIRECTV’s key programs associated with this pledge: LOS ANGELES MENTORING The DIRECTV Mentor Program kicked off in Los Angeles in January 2012, with 20 employees mentoring high school juniors at a local highneed charter high school. Employees met with their student mentees bi-weekly over an 11-month period to discuss college and career plans. The students also attended two field trips to DIRECTV, one to learn about career opportunities at its headquarters and one to see DIRECTV’s broadcast technology in action. In 2013, the program will expand to two Los Angeles high schools, and more than 40 employees will participate as mentors. DIRECTV HOME SERVICES PARTNERSHIP WITH HABITAT FOR HUMANITY OF GREATER LOS ANGELES In 2012, DIRECTV Home Services’ Southern California region partnered with Habitat for Humanity of Greater Los Angeles (HFH GLA) to launch a skilled volunteerism pilot program. Through this pilot, DIRECTV Home Services technicians installed the wiring in homes built by HFH GLA—both new construction and remodels—to allow partner home owners to easily set up television service with the provider of their choice. DIRECTV volunteers also assisted with the construction process on these homes. In 2013, the program will be continued in Los Angeles, and other U.S. locations are being considered for program expansion. Caroline Leach Vice President, Communications DIRECTV 36 CORPORATE CITIZENSHIP DIRECTV JOINS A BILLION + CHANGE “Mentorship has been a valuable resource for DIRECTV employees, and we’re pleased to have the opportunity to mentor local high school students. We know these students are the next generation of leaders—perhaps even at DIRECTV— and we’re committed to helping them think broadly about the opportunities available to them for college and beyond.” | BOTTOM LEFT Employees volunteer with Habitat for Humanity in Tuscaloosa, Ala. | TOP RIGHT High school students participating in the DIRECTV Mentor Program. | BOTTOM RIGHT AND TOP LEFT Through the DIRECTV Mentor Program in Los Angeles, employees work with students to develop college and career plans. 37 Disaster Relief TORNADOES IN THE SOUTHEAST U.S. In response to tornadoes that occurred throughout the southeast U.S. in April and May 2011, DIRECTV undertook relief efforts in support of our nearly 1,600 employees in the area and their local communities, including financial contributions, volunteer support, employee aid programs and in-kind donations. DIRECTV responded to natural disasters with financial support, volunteer efforts and our state-of-the-art technology in 2011 and 2012 to support the survivors of natural disasters in Brazil, Colombia, Japan, Venezuela and the southeast and northeast United States. BRAZIL AND COLOMBIA FLOODS DIRECTV Latin America responded to floods that occurred in Brazil and Colombia at the end of 2010 and beginning of 2011 by making a donation to Un Techo Para Mi País to support their work to build more than 5,000 temporary homes for flood victims. Employees throughout Latin America also participated in a gift matching program to raise funds to support the American Red Cross, World Vision and other nonprofits active in the relief efforts. JAPAN EARTHQUAKE AND TSUNAMI In the wake of an unprecedented 9.0-magnitude earthquake and the devastating tsunami that claimed thousands of lives and left many more without homes in March 2011, DIRECTV aided Japan’s disaster recovery effort. The company made corporate contributions to the American Red Cross Japan Earthquake and Pacific Tsunami Fund and the Japan Society Earthquake Relief Fund, as a demonstration of our support for impacted business partners Sony and Panasonic. DIRECTV also matched more than $45,000 in employee contributions to these charities. CORPORATE CITIZENSHIP DISASTER RELIEF AT DIRECTV In Alabama and Missouri, DIRECTV provided complimentary television service to American Red Cross emergency operations centers and shelters so that staff, volunteers and those most affected by tornadoes would have the news and information needed for the recovery effort. DIRECTV also made a donation to Habitat for Humanity to support disaster recovery in the cities most affected by the storms. In addition to company-directed giving, employees across the country stepped forward to offer support to their colleagues in affected areas. Employees at Customer Care Centers in Huntington, W. Va., Tulsa, Okla., Missoula, Mont., and Boise, Idaho, along with employees from Denver, Colo., donated hundreds of pounds of food, personal care items and supplies, in addition to more than $7,000 in cash donations that were matched by DIRECTV for employees at the Huntsville, Ala. Customer Care Center. VENEZUELA FLOODS DIRECTV Latin America responded to floods that occurred in Venezuela in late 2011 with a gift matching program for employees to raise funds to support nonprofit organizations active in the relief efforts. SUPERSTORM SANDY DIRECTV responded to Superstorm Sandy, the severe and widespread storm that hit the northeastern United States in October 2012, by making a cash donation to the American Red Cross and encouraging employees to donate to organizations active in the storm relief efforts. In total, DIRECTV contributed $65,000 to the American Red Cross to support Superstorm Sandy relief efforts, which included a corporate cash donation and employee gift matching. | DIRECTV has supported the American Red Cross with its disaster relief efforts in the U.S. and abroad. Photographs by Talia Frenkel/Les Stone/American Red Cross. 38 39 Employee and Community Engagement POLITICAL ACTION COMMITTEE (PAC) CHARITABLE MATCH The DIRECTV PAC is the federal political action committee of DIRECTV. The PAC helps support the election of candidates for federal office who support issues important to DIRECTV and our industry. Members of the DIRECTV PAC are eligible for the PAC Charitable Match Program, and can have their PAC contributions matched dollar-for-dollar to up to four charitable organizations of their choice, for a total up to $5,000. THE FORUM In DIRECTV Latin America, airtime is donated to nonprofit organizations as an outlet to educate customers about the organizations’ inspiring work in the community. In 2011 and 2012, The Forum donated nearly $640,000 of airtime on OnDIRECTV Channel 999 and ad space in Access DIRECTV magazine to organizations including Un Techo Para Mi País, World Vision, Fundación Tzedaká, Botines Solidarios Pies Descalzos and América Solidaria. | DIRECTV employees, dealers and business partners built a playground at an Atlanta elementary school in 2012. ONGOING CORPORATE CITIZENSHIP PROGRAMS DIRECTV and its employees support community partners and causes through the following programs: DIRECTV GIFT MATCHING In 2011 and 2012 combined, more than 2,000 DIRECTV U.S. employees had more than $2 million in personal donations matched dollar-fordollar by DIRECTV to more than 1,100 nonprofit organizations across the country. Through the DIRECTV Gift Matching program, the company will match employee and board member gifts dollar-for-dollar to nonprofit organizations, up to $20,000 per employee or board member per year. VOLUNTEER GRANTS To support U.S. employees who volunteer for the organizations and causes they care most about, DIRECTV offers a volunteer grants program. 40 Through this program, employees who volunteer 25 hours or more at a single nonprofit organization during a calendar year can request a $250 grant for the organization from DIRECTV. In 2012, employees who participated in the program tracked, on average, more than 50 hours of volunteer service during the year. DIRECTV SYSTEM DONATION PROGRAM Each calendar year, employees can request a DIRECTV system donation to support nonprofit organizations with their fundraising events. In 2012, the prize package was valued at more than $1,200 and included a four-room HD system, installation and one year of complimentary programming for any new, residential customer in the U.S. During 2011 and 2012, more than 1,200 DIRECTV prize packages valued at nearly $1.5 million were donated on behalf of employees to the nonprofit organizations of their choice. These prize packages supported a wide variety of charitable causes throughout the U.S. PUBLIC SERVICE ANNOUNCEMENT (PSA) AIRTIME In the U.S., DIRECTV supports nonprofit partners by airing their public service announcements at no charge, especially on our ROOT SPORTSTM networks in Seattle, Pittsburgh and the Rocky Mountain region. In partnership with our affiliates, we’ve donated airtime to support organizations including DonorsChoose.org, KaBOOM!, Big Brothers Big Sisters and the National Multiple Sclerosis Society. Our work locations across the country hosted 32 charity drives in 2011 and 2012, collecting much-needed items for local nonprofits. Hundreds of DIRECTV employees generously donated school supplies, books, food, clothing, toys and other items to support their local communities. Charity drive highlights in 2011 and 2012 included: • In 2011, Denver employees collected 30 bags of school supplies for a local Boys & Girls Club and donated 50 backpacks filled with school supplies to Florence Crittenton High School, which serves pregnant and parenting girls in grades 9-12. • Los Angeles-based DIRECTV employees donated more than 1,600 pounds of food, nearly 250 toys, hundreds of books, DVDs and more to support local organizations, including For the Troops and the CASE Food Bank, during the 2011 annual holiday charity drive. • At the end of 2011, employees from DIRECTV Home Services sites in Southern California donated more than 50 Thanksgiving turkeys and side dishes, and hundreds of holiday toys for the families served by the East Los Angeles Women’s Center, which their employees helped renovate during a volunteer project that fall. They continued the effort in 2012. • More than 800 pounds of food was collected by Tulsa, Okla. Customer Care Center employees for the Tulsa Area Food Bank in February 2012, and more than 1,100 pounds of food was collected by Missoula, Mont. Customer Care Center employees for the Missoula Food Bank in November 2012. CORPORATE CITIZENSHIP In 2011 and 2012, more than 30% of PAC contributors participated in this charitable match program, allowing DIRECTV to provide funding to organizations our employees champion across the U.S. DIRECTV CHARITY DRIVES • Employees at the Huntsville, Ala. Customer Care Center collected more than 600 school supply items for a local elementary school and Boys & Girls Club in July and August 2012. BLOOD DRIVES In 2011 and 2012, DIRECTV hosted 22 on-site blood drives at major work locations, encouraging U.S. employees to donate to the nation’s blood supply during their workday. In the 24-month period, more than 650 pints were collected, helping up to 2,000 patients in need of blood transfusions. 41 through both the Heart and Stroke Walk and a DIRECTV-sponsored golf tournament. The money raised by DIRECTV employees helped fund research grants and contributed to the fight against cardiovascular disease. SUPPORT FOR LOCAL COMMUNITIES DIRECTV employees at work locations across the country champion causes in their communities by giving back through contributions of time and money. Below are just a few of the many ways that DIRECTV has given back through community involvement in 2011 and 2012. Boise, Idaho. Fifty employees from the Boise Customer Care Center and the Nampa, Idaho DIRECTV Home Services site participated in a volunteer project to renovate a local elementary 42 school playground and outdoor learning garden. Fourth-grade students from the school worked alongside DIRECTV volunteers to renovate the garden, repaint benches and sidewalks and restore the school courtyard. Clarksburg, Md. Five employees from DIRECTV’s Engineering office in Maryland led a tour of their facility in March 2012 for 14 local Girl Scouts. The tour taught the Girl Scouts about exciting careers in engineering and emphasized the importance of math as the foundation for this work. Costa Mesa, Calif. In 2011 and 2012, employees from the Costa Mesa DIRECTV Home Services site joined the Costa Mesa Fire Department for its “Dear Santa” program. Employees adopted seven families from the Costa Mesa community and fulfilled their holiday wish lists. Denver, Colo. For more than 10 years, DIRECTV’s Denver office developed a relationship with the American Heart Association (AHA). DIRECTV is a leading contributor to the AHA’s Heart and Stroke Walk in Denver and raised more than $1 million in 2011 and 2012 to support the AHA, Huntsville, Ala. During summer 2011, employees at the Huntsville Customer Care Center partnered with Habitat for Humanity and sent 100 employees over two days to Tuscaloosa, Ala. to help with rebuilding efforts after the April 2011 tornadoes that impacted much of the state. Additionally, the Huntsville Customer Care Center provided sponsorship to nonprofit Sci-Quest, allowing 374 local elementary school students to visit the SciQuest facility and see firsthand the magic of science, technology, engineering and math. | OPPOSITE PAGE DIRECTV employees with friends and family at the 2012 American Heart Association Heart and Stroke Walk in Denver. | LEFT Margarita Kennedy from DIRECTV’s Oklahoma City Home Services site helps clean toys for children in need in December 2011. | RIGHT Employees from DIRECTV’s Engineering office in Maryland lead a tour of their facility in March 2012 for local Girl Scouts. Los Angeles, Calif. During summer 2011, more than 75 Los Angeles-based employees from DIRECTV’s IT organization hosted a Summer Olympics event at the Boys & Girls Club of Venice. The event included a rock wall, relay races and other activities for the children served by the club. In addition, employees from the Los Angeles Broadcast Center continued their longstanding relationship with the Boys & Girls Club of Venice by hosting holiday events at their work site in both 2011 and 2012. These events included a visit from Santa Claus and presents for the children donated by employees. CORPORATE CITIZENSHIP ROOT SPORTSTM in the Rocky Mountain region partnered with the Colorado Rockies to host the sixth annual Boys & Girls Club Rockies clinic. More than 175 members of the Boys & Girls Clubs of Metro Denver participated in the event put on by 15 ROOT SPORTS employee volunteers, Colorado Rockies players and staff, and Boys & Girls Club staff. Colorado Rockies outfielder Michael Cuddyer, pitcher Juan Nicasio and bullpen catcher Pat Burgess taught the kids baseball skills at different stations along with ROOT SPORTS on-air talent. Additionally, the Rocky Mountain ROOT SPORTS Creative Services team put on an interactive presentation for 60 members of the Boys & Girls Club of Metro Denver Wilfley Branch. Four stations were set up in the club gym, including scriptwriting, on-camera, design, and animation and print. Huntington, W. Va. During 2011 and 2012, Huntington Customer Care Center employees worked with local schools and food banks, the United Way, Big Brothers Big Sisters and the Salvation Army. Additionally, they grew their partnership with the Marshall University Foundation, which has created a STEM-focused model of early childhood education focused on establishing a 21stcentury learning environment, and donated $10,000 to support local school’s science, technology, engineering and math efforts. Manteca, Calif. In 2012, employees from the Manteca Home Services site partnered with their local United States Marine Corps Reserve’s Toys for Tots program and local Walmart to collectively donate a semi-truck full of toys to children for the holiday season. Additionally, employees participated in a chili cook-off and a holiday food drive benefiting the Second Harvest Food Bank. Missoula, Mont. DIRECTV’s Missoula Customer Care Center sponsored the Missoula Education Foundation’s Student Board. Through this partnership, DIRECTV and the Board developed a teacher recognition program and funded grants for creative projects for the local school district. Additionally, in fall 2012, more than 25 employees helped beautify a playground for neighboring Desmet Elementary School. 43 CORPORATE CITIZENSHIP | The DIRECTV blimp team partnered with multiple nonprofits to support children with serious illnesses. New York, N.Y. The DIRECTV blimp team partnered with Sunshine Kids, Starlight Foundation and Believe in Tomorrow, all nonprofit organizations dedicated to supporting children with serious illnesses. In 2011 and 2012, the blimp held 22 charity days, with more than 30 families participating. The program provides entertainment, education and family activities that help people cope with the pain, fear and isolation of prolonged illnesses. The children are given a tour, pose for pictures with the pilot and crew, and go for a memorable ride in the DIRECTV blimp. In addition, to support the Central Park Conservancy, promote fitness and healthy lifestyles and foster camaraderie, nearly 200 employees from DIRECTV’s New York City office participated in the 2011 and 2012 J.P. Morgan Corporate Challenge, a 3.5-mile run each year through Central Park. 44 Oklahoma City, Okla. During the 2012 holiday season, employees from the Oklahoma City Home Services site and the local Capitol Hill Lions Club prepared and delivered holiday baskets to needy families in the Capitol Hill area of Oklahoma City. Red Oak, Iowa. Employees at the Red Oak Technician Service Center (TSC) participated in several community projects in 2012, including a blood drive for the American Red Cross, contributions to the local food bank and clothing donations to families in need. In addition to Red Oak’s efforts, DIRECTV TSC employees in Meridian, Miss., Tullahoma, Tenn. and Hesperia, Calif. collected food and toys to support local community organizations. Seattle, Wash. ROOT SPORTSTM strengthened its partnership with Special Olympics of Washington for the Breakfast with Champions, which raised proceeds to help support yearround training and athletic competition for children and adults with intellectual disabilities. Sylmar, Calif. Employees at DIRECTV’s Home Services site in Sylmar, Calif. worked together over three weeks to renovate a science lab at Our Lady of the Holy Rosary School, which serves kindergarten through fifth-grade students. The employees installed new flooring, painted walls, and donated materials and a new television to outfit the lab. Additionally, the school was set up for free educational programming through DIRECTV GOES TO SCHOOL®, allowing students to watch science-related television shows in the lab. Tulsa, Okla. Employees at the Tulsa Customer Care Center and Tulsa DIRECTV Home Services site continued their longtime partnership with local MacArthur Elementary School by participating in a courtyard revitalization project with 29 volunteers. Employees also worked with students learning English as a second language to help with their reading comprehension skills. Additionally, nearly 130 employees and family participated in the Juvenile Diabetes Research Foundation’s Walk to Cure Diabetes. Washington, D.C. Employees from DIRECTV’s Government Affairs office have continued their ongoing partnership with Everybody Wins! Power Lunch, a mentoring and reading program for students in high-need schools. Through this program, employees serve as role models for students while building their reading skills. | TOP New York employees at the 2012 J.P. Morgan Corporate Challenge to support the Central Park Conservancy. | BOTTOM RIGHT Dominic Davis from DIRECTV's Huntsville, Ala. Customer Care Center helps at a Habitat for Humanity volunteer project in Tuscaloosa, Ala. 45 SUSTAINABILITY SUSTAINABILITY | TOP LEFT Employees at a Habitat for Humanity home build in Tuscaloosa, Ala. | TOP RIGHT Larysa Feyti, a Missoula, Mont. DIRECTV employee, helps clean a school library. Photo credit: Jessica Sterling. | BOTTOM LEFT An employee helps paint a charter school in Los Angeles. | BOTTOM RIGHT Human Resources employees painted murals at a school in San Juan Capistrano, Calif. 46 47 DIRECTV’s Commitment to Sustainability We offer the premier digital television entertainment service our customers expect while reducing our environmental impact. From our corporate offices to our van fleet to the equipment our customers use, the actions we take to conserve energy and reduce waste have an immediate impact on our footprint. We began formalizing our sustainability management approach in 2010 by identifying material impacts and exploring potential initiatives. In 2011, DIRECTV’s leadership selected a cross-functional team of more than 20 employees representing every business unit throughout the company. This cross-functional team is led by DIRECTV's Senior Director of Sustainability with oversight from the Executive Vice President, Services and Operations, and the Vice President of Supply Chain. The team evaluated areas where DIRECTV's activities affect the environment and their assessment revealed four key areas of focus for which we set corresponding aspirational principles to guide our efforts. After presenting an initial sustainability plan to our Board of Directors in May 2012, we began publicly sharing our goals and what we are doing to achieve them through our CDP response and via our sustainability website. ENERGY-EFFICIENT PRODUCTS: CONSUMER RECYCLING: Lead the industry in increasing efficiency and decrease the energy required to deliver our services to our customers’ homes. Give every customer the means to recycle all of his/her DIRECTV equipment easily and responsibly. GREENHOUSE GAS EMISSIONS: WASTE: Continually reduce the carbon footprint of operations, including facilities and fleet, through innovative technologies and management approaches. Reduce landfill waste from our operations and facilities to almost zero by avoiding material use and maximizing recycling of packaging, paper and other disposables. SUSTAINABILITY “We have a real opportunity to respond to issues that impact us and the society we operate in. Operating more responsibly means we’re identifying new opportunities, addressing risks, and managing our business with an eye to the long term.” DIRECTV continuously seeks out innovative business solutions that are sustainable and socially responsible. This is a growing priority not only for our company, but also for our customers, investors and employees. And it’s just good business. Tom McGeorge Vice President, Supply Chain DIRECTV | DIRECTV is committed to evaluating new alternative fuel technologies to reduce emissions throughout our operations. 48 49 Energy-Efficient Products We set a goal in 2011 to reduce the average annual electricity use of a new three-room HD DVR installation by 25% by 2013. We exceeded this goal in late 2012, reaching a 30% reduction by using a model HR34 server1 and two model C31 thin client receivers. Future iterations of the Genie solution are expected to be even more efficient, continuing DIRECTV’s advances in delivering energy savings. ENERGY STAR® DIRECTV is a longtime participant in the ENERGY STAR program, operated jointly by the U.S. Environmental Protection Agency and the U.S. Department of Energy. In addition to homes, lighting and appliances, ENERGY STAR sets energy efficiency standards for many categories of consumer electronic products, including the receivers DIRECTV uses to deliver entertainment services. ALLIANCE TO SAVE ENERGY (ASE) AWARD WINNER INNOVATING IN EFFICIENCY While we have already set the bar high, DIRECTV continues to innovate, striving to further improve product efficiency. Today, we are moving toward reduced energy consumption with our Genie™ whole-home HD DVR solution.1 This state-of-the-art whole-home set-up uses a single, central HD DVR server and a highly efficient thin client receiver for each additional TV. For smart TVs that are RVU-compliant, no additional receiver is needed. 50 RVU is a technology standard developed by the RVU Alliance2 (of which DIRECTV is a founding member) that allows the Genie to deliver DIRECTV services over a digital home network to additional TVs elsewhere in the home. Eliminating the need for an additional DIRECTV receiver improves our customers’ aesthetic experience and reduces energy consumption. The Alliance to Save Energy (ase.org) is a nonprofit organization that promotes energy efficiency worldwide through research, education and advocacy. It awarded DIRECTV its Innovative Star of Energy Efficiency Award in 2012 for demonstrating a significant and tangible commitment to the cause of energy efficiency in the U.S. Genie™ HD DVR (Model HR34) is not an ENERGY STAR-qualified receiver. 2Details at www.rvualliance.org. 1 We will make our technology more efficient and will work toward complying with the new ENERGY STAR Version 4.1 set-top box (receiver) specification that will be released in 2014. Furthermore, we will collaborate with television and consumer electronics manufacturers, bringing our consumers additional energy savings through the use of RVU technology in their connected smart TVs and devices. “In the past 20 years, the Alliance has recognized and honored the most industrious energy efficiency advocates and innovators across all sectors of the economy. Our illustrious 2012 Stars of Energy Efficiency Award Winners have demonstrated the power of energy efficiency to improve corporate and consumer bottom lines, while making the world cleaner, more comfortable and more secure.” Kateri Callahan SUSTAINABILITY More than 95% of the receivers we've had manufactured since joining the program in 2009 are ENERGY STAR qualified.1 We set an aggressive goal in 2011 to accelerate consumer adoption of our ENERGY STAR-qualified receivers to 70% of all active DIRECTV receivers by 2013. We exceeded this goal ahead of schedule, surpassing 72% at the end of 2012. Given this progress, we will re-evaluate and potentially revise this goal in 2013. LOOKING AHEAD President, Alliance to Save Energy 51 Greenhouse Gas Emissions DIRECTV believes climate change is a key societal issue that the company has an obligation to help address. With escalating fuel costs and more extreme weather events occurring across the globe, we are making a concerted effort to optimize efficiency in our receivers, fleet and operations. REDUCTION STRATEGY We are reducing our greenhouse gas (GHG) emissions by investing in strategies that have the largest impact on our environmental footprint. | Los Angeles employees volunteered to help create a trail to a scenic overlook in 2012. Ramsay Huntley Sustainability Manager DIRECTV 52 These programs help reduce greenhouse gas emissions that result from electricity our receivers and facilities use, as well as fuel used in fleet vehicles, product shipping and distribution, and business travel. GREENHOUSE GAS INVENTORY DIRECTV calculates its U.S. GHG inventory using guidelines from the World Business Council for Sustainable Development and the World Resources Institute (known as the GHG Protocol Corporate Accounting and Reporting Standard and the Corporate Value Chain (Scope 3) Standard or “GHG Protocol”). Our inventory includes emissions of five types of gases: • • • • • Carbon dioxide (CO2) Methane (CH4) Nitrous oxide (N2O) Hydrofluorocarbons (HFCs) Hydrochlorofluorocarbons (HCFCs) GREENING OUR FLEET “We reduced fuel consumption by more than a million gallons in 2012, which cut the greenhouse gas emissions from our fleet by more than 10% in a single year.” Additionally, we began evaluating the use of alternative fuels to make our fleet cleaner. In 2011, we began using 40 propane-fueled vehicles as part of a pilot program to reduce our carbon and other air emissions. These vehicles also enabled our technicians to drive in high-occupancy vehicle carpool lanes, which helped them perform their jobs more efficiently. At year-end 2012, we had 77 propane-fueled vehicles, and we plan to increase our alternative fuel fleet in 2013. We continue to examine other alternative fuel technologies, such as natural gas and biodiesel. Finally, DIRECTV seeks to improve fleet efficiency each time we purchase or maintain one of our vehicles. We strive to buy the most fuel-efficient vans that meet our needs, and are evaluating how to decrease our loads so we can use smaller, more efficient vehicles. We perform regularly scheduled vehicle inspections to ensure safety and efficient performance. These initial strategies already have made a significant difference, and we exceeded our 2015 gallons of gasoline per work order goal in 2012. These strategies cut the GHG emissions associated with our fleet, which is the largest part of DIRECTV’s carbon footprint, by more than 10%. Brandon Morris Director, Fleet Services, DIRECTV With nearly 6,000 vehicles, DIRECTV’s U.S. fleet represents a large component of our carbon footprint reduction goals. In 2011, we deployed a variety of strategies that helped us exceed our goal of a 5% reduction in gasoline use per work order. These efforts continue and primarily include: • Equipping our technicians’ handheld devices with turn-by-turn navigation to help them reach their destinations safely and efficiently • Using a state-of-the-art dispatch system that updates in real time so that DIRECTV Home Services technicians can be routed to their next job more strategically, helping to ensure timely installation and reducing unnecessary trips due to rescheduled or cancelled appointments • Improving logistics to reduce the number of trips our technicians make to warehouses to replenish their equipment supply SUSTAINABILITY SUSTAINABILITY “We were the first satellite television company in the U.S. to participate in the CDP, and we received a disclosure score of 91 out of 100—the highest score of any first-time S&P 500 or Global 500 respondent in 2012.” • Designing our ENERGY STAR®-qualified receivers and Genie™ whole-home HD DVR solution1 to be energy efficient • Incorporating sustainable building principles into facility design and operations to reduce GHG emissions • Strategically routing technicians to customers’ homes and supply warehouses to reduce fuel consumption • Packaging products tightly and transporting them in ocean freight to ship them more efficiently • Increasing the size of our alternative fuels fleet • Purchasing wind power renewable energy certificates equal to 10% of the annual electricity consumption of our New Hampshire uplink facility • Subsidizing transit passes and installing electric vehicle charging stations for employees • Further developing an enterprise-wide team to identify additional reduction opportunities Of these, CO2 is by far the largest contributor to DIRECTV’s carbon footprint. Beginning with our first GHG inventory, completed in 2012 and based on 2011 data, we hired Deloitte & Touche to perform an independent review of our footprint. For the 2011 and 2012 inventories, nothing came to their attention that caused them to believe that our Statement of Greenhouse Gas Emissions was not presented, in all material respects, in conformity with the GHG Protocol. Read our Statement of Greenhouse Gas Emissions with their Independent Accountants’ Review Report on DIRECTV’s sustainability website. COMPARISON OF DIRECTV'S 2011 AND 2012 U.S. FLEET FUEL CONSUMPTION AND GREENHOUSE GAS EMISSIONS 2011 FLEET CARBON FOOTPRINT GALLONS OF GASOLINE USED 2012 106,000 MTCO2e* 93,000 MTCO2e 12 million 10.5 million % REDUCTION -12% *Metric tons of carbon dioxide equivalent (this is the standard unit by which GHG emissions are measured) 53 The vast majority of our international deliveries utilize ocean freighters, as they are the most efficient and cost-effective shipping mode. Sustainable Building Practices • Recycling nearly all construction waste As part of our carbon footprint calculation, we incorporate indirect emissions associated with our outsourced transportation activities, such as truck, ocean, rail and overnight transport. These Scope 3 emissions totaled 60,687 MTCO2e in 2011 and 54,422 MTCO2e in 2012, a reduction of 10%. We continually look for ways to reduce climate impacts from shipping. In 2012, DIRECTV joined the U.S. Environmental Protection Agency’s SmartWay® program as a Shipper Partner. SmartWay® is a voluntary partnership to reduce freight and fleet sector energy consumption, pollutants and greenhouse gas emissions. SmartWay® helps us to collect, calculate and monitor fleet emissions to identify additional efficiency improvements. The majority of our third-party carriers are SmartWay®-certified and together we are identifying more efficient transport options. BUILDING EFFICIENCY To reduce the environmental impact of our offices, data and broadcast centers, we identify refurbishing opportunities or incorporate sustainable building principles into new construction. Our building management procedures also help ensure that energy-consuming devices are not in use. SAVING ON SHIPPING Distributing receivers to millions of customers across the U.S. requires a variety of shipping methods. DIRECTV works very hard to use the most efficient shipping methods available. 54 We continue to promote the incorporation of LEED standards in the design and construction of our new and renovated facilities. For example, in early 2012, we began renovating the buildings on our headquarters campus in El Segundo, Calif. to greatly improve efficiencies and to provide our employees with a new work environment that would better meet their needs. One of the buildings is LEED Silver Core and Shell certified4 and we are seeking LEED Gold certification for Commercial Interiors5 for its interior. • Utilizing highly efficient cooling equipment and lighting and purchasing ENERGY STAR-qualified equipment for use in the building • Implementing a green cleaning program that aligns with LEED protocols • Using low-emitting materials, like paints and adhesives, throughout the renovation In 2011, we opened a new call center in Huntington, W. Va. that uses approximately 40% less electricity than the call center it replaced. In addition, we moved several hundred employees into a LEED-certified office building in Greenwood Village, Colo. Looking ahead, DIRECTV intends to build more efficient data and broadcast centers by using advanced technologies and smart design that will minimize cooling needs and will optimize the layout of equipment. We will also continue to implement building retrocommissioning activities and to upgrade lighting and building systems to reduce energy consumption at other existing facilities. Additionally, we plan to develop building sustainability standards that incorporate LEED best practices as well as our own. This will help us to better assess improvement opportunities and reduce impacts. Elsewhere across the country, DIRECTV has incorporated such building efficiency measures as: SUSTAINABILITY Residential and commercial building construction and operation consumes 73% of electricity and generates 38% of carbon emissions within the U.S.3 DIRECTV recognizes that operating our buildings efficiently can reduce operating costs, natural resource consumption and our carbon footprint. • Donating office furniture to schools that DIRECTV supports through our corporate citizenship efforts Our broadcast operations have also improved equipment efficiencies over the last two years. Previously, U.S. broadcasting sites required two different systems to deliver video content. After installing an innovative solution called the Wonderbox, which consolidates the two systems into a single piece of equipment, total electricity consumption dropped by more than three million kilowatt-hours, with even more savings to come once the project is complete. This is a reduction of more than 10% in a single year and is equivalent to the electricity used by more than 250 typical homes in the U.S. in a one-year period. • Upgrading to more efficient motors in our heating and cooling systems that consume less energy while providing the same power output • Installing variable frequency drives that digitally control and optimize the amount of power fed to equipment such as data center cooling equipment • Analyzing opportunities to reduce energy consumption, such as replacing interior and exterior lighting with more efficient alternatives • Re-programming building heating and air conditioning systems to optimize efficiency | DIRECTV's alternative fuel vans use cleaner-burning propane. 55 COMPARISON OF DIRECTV'S 2011 AND 2012 SCOPE 1 AND SCOPE 2 GHG EMISSIONS FROM U.S. OPERATIONS GREENHOUSE GAS GOALS AND PROGRESS In 2012, we reduced our Scope 1 and Scope 2 carbon footprint 10% relative to our 2011 baseline. This reduction is equivalent to the emissions produced by the annual electricity use of more than 3,000 homes or the carbon sequestered by more than 17,000 acres of average U.S. forests. This single-year reduction allowed DIRECTV to surpass its 2015 emissions reduction goal several years ahead of schedule.7 “Knowledge is power. Now that we have the data to better understand our carbon emissions— from the fuel used by our vans to emissions from our employees’ business travel—we have the knowledge to work to make our business more sustainable.” 2012 2011 U.S. SCOPE 1 AND SCOPE 2 CARBON FOOTPRINT 215,601 MTCO2e 194,018 MTCO2e % REDUCTION -10% Contributions to 2012 Scope 1 and 2 GHG Emissions Mike Palkovic Executive Vice President, Services and Operations DIRECTV DIRECTV was the first satellite television company in the U.S. to participate in the CDP by publicly disclosing our footprint through CDP’s reporting format. For this response, we received a disclosure score of 91 out of 100—the highest score of any first-time S&P 500 or Global 500 respondent in 2012. The disclosure score reflects the comprehensiveness of our response in terms of the depth and breadth of our answers. We also received a “B” for our performance score. The CDP awards performance points for actions considered to contribute to climate change mitigation, adaptation and transparency. The “B” indicated climate change is recognized as a strategic priority for DIRECTV, but not all initiatives are fully established.6 56 2% | The propane vans on the road in California have a special design that lets our customers and other motorists know about our commitment to deploying alternative fuel vehicles. U.S. Green Building Council, http://www.usgbc.org/Docs/Archive/General/Docs18693.pdf. 4This certification was earned by the landlord for the building shell; as the tenant, DIRECTV is seeking certification for the interior of the building. For more information about the building see: http:// www.kilroyrealty.com/uploads/EditorDocs/KRC%20Reports%20Achievement%20of%20LEED%20Silver%20certification%20for%202260%20 E%20Imperial%20Highway%203.20.12.pdf. 5LEED for Commercial Interiors Version 3, http://www.usgbc.org/leed/rating-systems/commercialinteriors. 6Source: CDP. https://www.cdproject.neten-US/Results Pages/CDP-2012-performance-scores.aspx (Accessed March 27, 2013). 7 For carbon dioxide calculations, see the U.S. EPA’s calculation tool, available from: http://www.epa.gov/cleanenergy/energy-resources/calculator. html (Accessed March 31, 2013). 3 Electricity Use 45% Stationary Emissions SUSTAINABILITY Refrigerants DIRECTV spent 2011 building a sustainability team dedicated to tracking greenhouse gases, establishing our benchmark carbon footprint, and setting reduction and reporting goals. 3% Mobile Emissions 50% 57 Comparison of DIRECTV’s 2011 and 2012 Greenhouse Gas Emissions from U.S. Operations REPURPOSING OUR ELECTRONICS Reduce, Reuse, Recycle. At DIRECTV, we take these three Rs seriously. As a company that uses electronic equipment to deliver our services, we actively work to reduce electronic waste by: • Refurbishing used equipment we recover from customers' homes, which significantly reduces the number of new receivers we need to produce and the resources required to manufacture and ship them. In 2012, we refurbished more than 8 million DIRECTV receivers and more than 650,000 pieces of other electronic hardware used to provide our services. 250,000 Metric Tons of CO2 Equivalent 215,601 200,000 194,018 10% overall emissions reduction from 2011 to 2012 150,000 ELECTRICITY USE REFRIGERANTS 100,000 50,000 STATIONARY EMISSIONS 2012 GHG Footprint Through our disclosure to the CDP and our website, directv.com/sustainability, we also met our goal of publishing our first carbon footprint for U.S. operations in 2012. We plan to measure and publish the carbon footprint of our non-U.S. operations by 2015. Our Argentina operation calculated its first carbon footprint in 2012, and we will be working with other countries to calculate their footprints in pursuit of a single global DIRECTV carbon footprint. We're proud of these achievements, and we also recognize that our work is just beginning. 58 • Recycling 100% of recovered equipment we can’t refurbish, including receivers, hardware and our own internal equipment, such as computers and monitors. We partner with electronics recyclers that conform to accredited recycling standards set forth by Responsible Recycling Practices (R2),8 so that we can be confident our materials are being handled properly. In 2012, this amounted to nearly 10 million pounds of recycled equipment from DIRECTV. • Regularly redesigning our services to require less electronic equipment, like our latest customer innovation, the Genie™ Advanced Whole-Home DVR. This system utilizes significantly smaller thin client receivers for additional TVs, or in cases where an RVU-compliant television is available, no receiver at all. Further, using smaller equipment cuts down on packaging waste and shipping emissions. SUSTAINABILITY MOBILE EMISSIONS 2011 GHG Footprint Consumer Recycling In 2013, we will take our commitment to reducing electronic waste one step further. We will make it free and easier for our U.S. customers to recycle their used, non-repairable or outdated electronic devices, including cell phones, laptops, MP3 players, and non-recoverable DIRECTV receivers.9 Beginning in March 2013, customers can log on to directv.com/recycle and select the electronics they want to recycle. DIRECTV will provide a pre-paid shipping label for them to print out and send the equipment to our recycler. For larger items, we will direct customers to local electronic drop-off sites through the Earth911 Recycling Center Directory. | TOP Workers at our e-waste vendor disassemble receivers to be properly recycled. | BOTTOM DIRECTV maintains its fleet to optimize performance and minimize environmental impact. 59 Waste “We are working hard every day to divert more and more of our waste from landfills because we’re committed to reducing our impact.” Clay Montague Senior Director, Sustainability DIRECTV Consumer Electronics Association11 • Reducing packaging and material used, so we don’t generate as much waste • Reusing, recycling and responsibly disposing of our materials and supplies where we can Our efforts are paying off. In 2011 and 2012, we kept more than 8,000 tons of packaging, paper and food waste out of U.S. landfills. That's equivalent to the waste disposed by more than 10,000 people every year.10 By focusing on recycling efforts, DIRECTV increased the amount of waste diverted from landfills by nearly 10% from 2011 to 2012. We are engaging our employees, suppliers and even our customers to reduce waste even more. SMARTER PACKAGING | DIRECTV is reducing waste by using cardboard balers. 60 Large and heavy packaging can impact the environment and cost more to ship, which is why DIRECTV explores ways to reduce packaging impacts from the start. Waste reduction is also generating new revenue streams from our sales of cardboard bales. We installed balers—equipment that crushes and compacts large amounts of cardboard into a single bale—at more than 20 sites, with more on the way. Recycling cardboard this way reduces waste, transportation emissions and waste management expenses. PAPERLESS BILLING SUSTAINABILITY “DIRECTV found an innovative solution to packaging its equipment that saved the company money and helped it to be greener.” Reducing waste is good for the environment, the communities in which we operate and our own bottom line. DIRECTV reduces waste by: We began by looking for ways to pack multiple receivers in a single package, and we have moved on to looking for other efficiencies. For instance, we package our thin clients 10 to a single carton to minimize the required packaging. We also redesigned the recovery kits we send to our customers. Our customers use these kits to return their receivers to us and the redesigned kit includes an inner carton that can be re-used up to 13 times before being completely recycled by our vendor. We continue to look for ways to reduce packaging and use recycled and recyclable materials. Mailing invoices costs DIRECTV and our customers millions of dollars each year in postage, generates significant volumes of paper waste and places consumers at risk for identity fraud. Our customers can elect to use paperless billing to pay their bills and view their statements online. We are making steady progress toward our goal of having 35% of our customers using paperless billing by 2015. INSTRUCTION MANUALS GO VIRTUAL DIRECTV saved more than 30,000 trees12 in 2012 alone by discontinuing the printing and shipping of paper instruction manuals that customers receive at installation. Manuals are now downloadable from our Answer Center at support.directv.com. 61 DIRECTV uses a large amount of paper for our marketing materials and general office needs. For example, we used more than 40 million pounds of paper for advertising (e.g., circulars delivered with newspapers) in 2012. Of this paper, more than 80% (by weight) was made from 90% recycled content, with 30% coming from post-consumer sources. The mill where the paper was made is certified by the Forest Stewardship Council and related groups. Based on DIRECTV’s 2012 use of this recycled paper, the Environmental Paper Network Paper Calculator estimates more than 200,000 fewer trees were used, and a reduction in greenhouse gases equivalent to removing more than 4,500 cars from the road for a year was accomplished.12 pounds of food waste from our kitchen, which the service mixes with yard waste and turns into finished compost that is used to grow organic vegetables. We plan to incorporate composting into our sustainability standards and expand the program to our other operations in the future. LOOKING AHEAD At DIRECTV, we continue to recycle responsibly, incorporate best practices across the enterprise and examine additional waste reduction methods. We calculated our waste footprint for U.S. facilities in 2011, and it was first published in 2012 on our website. The chart on page 63 shows the year-to-year comparison. Other targets we intend to achieve include: DIRECTV’s U.S. 2011-2012 Waste Stream Volume (tons) and Distribution (%) • D iverting at least 75% of the waste from our U.S. operations from landfills by 2015. We also plan to further strengthen our recycling efforts, redesign our packaging and expand food composting in our offices 10,529 tons • E ngaging our suppliers to drive additional waste reduction practices throughout DIRECTV’s supply chain 2012 ACHIEVEMENTS ADDITION OF CARDBOARD BALERS AND SINGLE-STREAM RECYCLING 9% 90% year-on-year reduction in trash 80% 70% 6,567 5,979 TRASH 60% SINGLE-STREAM RECYCLING 50% SHREDDED PAPER SUSTAINABILITY Several departments at DIRECTV are looking at new, more sustainable paper sources or eliminating paper altogether. For example, customers who sign up with an email address receive full terms and conditions via email instead of paper. By emailing our Customer Agreement and Privacy Policy, we avoided printing more than 30 million pieces of paper in 2012 alone. 10,331 tons 100% • M easuring our baseline footprint for the amount of materials (e.g., metal and plastic) used per home installation Tons and Percentage of Distribution OPTIMIZING PAPER USE 601 40% 396 177 RECYCLING 30% BALED CARDBOARD COMPOSTING The U.S. Environmental Protection Agency estimates that the U.S. spends $1 billion to dispose of food waste annually. With Americans throwing away an estimated 96 billion pounds of food each year, food scraps make up the third largest waste stream after paper and yard waste.13 DIRECTV began separating food waste at our employee cafeteria in Denver, Colo., as part of a pilot program with a local industrial composting service. In 2012, we composted nearly 30,000 62 20% 3,566 3,406 10% | DIRECTV employees assessing our waste stream reduction efforts at a recycling facility in Colorado. To learn more about the R2 standard, visit http://www.r2solutions.org/.9 If your DIRECTV receiver is recoverable, you will receive a return kit directly from us. The website will walk you through determining whether your receiver is recoverable or not.10 EPA Municipal Solid Waste estimates. Source: http://www.epa.gov/epawaste/nonhaz/municipal/index.htm. 11 Consumer Electronics Association. 2011. “Inspiring Change.” (p. 16) Source: http://www.ce.org/ CorporateSite/media/Government-Media/Green/CEA-2010-Sustainability-Report.pdf 8 (Accessed April 1, 2013). 12 Environmental impact estimates were made using the Environmental Paper Network Paper Calculator Version 3.2. For more information visit http://c. environmentalpaper.org/home.13“Waste Not, Want Not” (p. iii) Source: http://www.epa.gov/ wastes/conserve/pubs/wast_not.pdf (Accessed April 1, 2013). 168 0% 2011 Waste Stream 2012 Waste Stream 63 Recognition In the second half of 2012, DIRECTV was recognized for its sustainability efforts. We became the only pay-TV provider on the FTSE4Good Index Series, which recognizes companies for meeting its globally recognized corporate responsibility standards. FTSE indices are used extensively by investors worldwide for investment analysis and performance measurement. Additionally, we received the ENERGY STAR® Excellence Award for the third year in a row, ranked 76 of the 500 largest companies in Newsweek’s annual Green Ranking (improving more than 60 spots in the rankings in a single year), and received the Alliance to Save Energy's (ASE) Innovative Star of Energy Efficiency Award. LOOKING AHEAD In 2013, DIRECTV will continue to build upon past success with an increased focus on further reducing our environmental and product footprints. We will do this in the U.S. by: • Engaging our top 50 suppliers in sustainability discussions and beginning to track their efforts to meet our Environmental and Social Code of Conduct by 2016. We will also encourage them to drive additional efficiency, carbon footprint reduction, and waste reduction practices throughout the supply chain | ABOVE DIRECTV's propane vans are fine-tuned to deliver maximum fuel performance on the road. | TOP The ENERGY STAR® Excellence Award demonstrates DIRECTV's commitment to energy efficiency. 64 • Encouraging customers to recycle receivers, packaging and materials, and to pay bills online to reduce paper use. We will enable customers to recycle their unused, non-repairable or outdated electronic devices for free via our website, directv.com/recycle • Collaborating with television manufacturers and others to advance RVU-capable technology that streams digital media without the need for a separate receiver, further reducing energy consumption • Re-evaluating our goal to accelerate consumer adoption of our active ENERGY STAR-qualified receivers to 70% by 2013 as this goal has already been met1 • Pursuing our goal of diverting at least 75% of our operational waste from landfills by 2015. We also plan to strengthen recycling efforts, redesign our packaging and expand food composting to other U.S. sites • Expanding use of propane-powered vans and working to further reduce the gallons of consumed gasoline per work order. We will continually collect, calculate and monitor fleet emissions to identify additional efficiency improvements • Measuring our baseline footprint for the amount of materials (e.g., metal and plastic) used per home installation • Building more efficient data and broadcast centers and reducing energy consumption at existing facilities. We also plan to develop building sustainability standards that incorporate LEED best practices as well as our own • Installing electric vehicle recharging stations at our headquarters in El Segundo, Calif. • Continuing to subsidize annual light rail, train and bus passes for employees at select U.S. locations Savings are based on DOE’s Energy Information Administration average U.S. residential electricity costs. 2009 through 2011 savings based on full year average residential costs while 2012 is based on costs through August 2012. See: http://www.eia.gov/electricity/monthly/ epm_table_grapher.cfm?t=epmt_5_3 (Accessed November 14, 2012). 15 2012 electricity savings based on ENERGY STAR’s guideline that ENERGY STAR-qualified set-top boxes are at least 45% more efficient than conventional models; prior year savings based on previous ENERGY STAR 14 “Our products represent by far the largest impact of our business. We deliver the outstanding services our customers expect in the most efficient manner possible, setting the bar high for our entire industry.” Rômulo Pontual Executive Vice President and Chief Technology Officer DIRECTV SUSTAINABILITY This recognition has motivated us to do more. We plan to further engage employees in contributing to our success, begin to align U.S. and Latin American sustainability goals and initiatives, continually consider new ways to reduce our impacts and make our reporting more robust. • Preparing to comply with the new ENERGY STAR Version 4.1 standards that will be released in 2014 DIRECTV’s receivers provide exceptional entertainment while saving energy. This allows our customers to save on utility bills and reduce their household’s carbon footprint. The savings add up. Since 2009, we have deployed more than 40 million ENERGY STAR-qualified receivers1 in the U.S., which collectively saved our customers more than $400 million14 on their utility expenses and saved almost four billion kilowatt hours15 of energy use—enough to power more than 300,000 single-family homes for a year.16 As a result of these efforts, the U.S. Environmental Protection Agency (EPA) honored DIRECTV with an ENERGY STAR award for Excellence in Energy Efficient Product Design for three consecutive years, from 2010 to 2012. guidance of 40% more efficient. See: https://www.energystar.gov/index.cfm?fuseaction=find_a_product.showProductGroup&pgw_code=ST (Accessed November 15, 2012). 16 According to the DOE’s Energy Information Agency, an average U.S. single-family home consumes 11,319 kWh per year (2012 data). See: http://www.epa.gov/cleanenergy/energy-resources/refs.html#houseelec (Accessed March 19, 2012). 65 ECO DIRECTV in Latin America Under the branded initiative “ECO DIRECTV,” our employees in Latin America are supporting the environment while improving the communities in which they live and work. This program includes donated airtime for environmental public service announcements, employee recycling programs that raise funds for nonprofit organizations, and environmentally focused volunteer projects. Additionally, DIRECTV Latin America has encouraged its customers to save paper by switching to electronic billing; as of 2012, more than 209,000 customers had switched. Below are just a few of the 2011 and 2012 ECO DIRECTV highlights: • Four television spots to help create awareness about environmentally friendly practices were aired via OnDIRECTV. The value of this airtime was $136,110 • In 2011-2012, 550 trees were planted by DIRECTV Latin America employees • In December 2011, 50 employees in Buenos Aires, Argentina joined together to purchase and plant more than 250 trees on an ecological reservation • DIRECTV employees in Venezuela recycled ink toner cartridges and donated the proceeds to FUNDANA, an organization that supports young children who have been the victims of mistreatment, abuse or neglect • In Venezuela, 2,890 pounds (1,311 kilos) of white paper were recycled in 2011 • In Puerto Rico, 75 employees volunteered 675 hours in 2011 to collect 300 bags of garbage from a public beach. Employees’ families were also invited, and their children were taught about recycling OUR PEOPLE • Joined by two different local foundations, 60 employee volunteers in Venezuela helped clean the beaches on the island of Margarita and in Puerto la Cruz in 2011 • DIRECTV Argentina published its first GRI Corporate Social Responsibility Report in 2012, and other countries in Latin America are working toward reporting in the future OUR PEOPLE | Our ECO DIRECTV efforts are engaging employees throughout our Latin American operations. 66 67 Diversity by the Numbers Creating an Innovative Workplace “Our success is critically dependent on a constant stream of innovation that stems from diverse ideas and fresh thinking. It also depends on an inclusive workplace culture that drives collaboration, productivity and engagement— and inspires our workforce to make great things happen for our customers.” Our workforce diversity and inclusive workplace culture enables our company to deliver a superior employee and customer experience. Our marketplaces in the U.S. and Latin America are diverse, dynamic and evolving. As the world’s leading provider of digital pay television, DIRECTV recognizes that delivering a rich digital experience to our customers requires a diverse workforce. To strengthen our culture, DIRECTV has examined its opportunities in the areas of diversity and inclusion, and we have developed a comprehensive diversity and inclusion strategy using best-in-class approaches to focus our efforts in three key areas: 68 “The nature of our business requires a diversity of individuals’ backgrounds, skills and perspectives to successfully deliver a great video entertainment experience for 35 million customers across the Americas.” In 2012, DIRECTV’s U.S. female and minority workforce representation remained strong as compared to 2011, indicating that our programs are working. In Latin America, 2012 female workforce representation was consistent with 2011. 2011 AND 2012 EMPLOYEE DIVERSITY Workforce We identify candidates from diverse backgrounds, monitor the diversity represented within our workforce, and drive diversity through our talent pipeline with our talent management process. DIRECTV U.S. Workplace We design our programs and practices to foster an environment where employees feel comfortable bringing their whole selves to work and are fully engaged in working together to deliver the best customer and video entertainment experience. 30% 30% MINORITY 37% 38% 2011 2012 FEMALE 34% 34% MINORITY 29% 29% DIRECTV LATIN AMERICA | TOP Employees from DIRECTV's Huntsville, Ala. Customer Care Center at a teambuilding conference. | ABOVE Los Angeles employees participate in a mentoring event. Photo credit: Jessica Sterling. 2012 FEMALE U.S. BENCHMARK Marketplace Our commitment to diversity and inclusion extends beyond the walls of our offices to our relationships with our suppliers, communities, industry and customers. 2011 2011 2012 FEMALE 52% 53% MINORITY N/A N/A Minority categorizations are U.S. governmentdefined in order to allow the U.S. government to monitor corporations to ensure that they provide equal employment opportunities. Due to cultural and regulatory differences, these ethnic categorizations are not similarly tracked in Latin America. The benchmark is the combination of U.S. Department of Labor BLS industries, “U.S. Cable Subscription Jobs” and “Non-wired Telecommunication Service Jobs.” Percentage excludes SKY Mexico employees, as DIRECTV has a minority interest and does not control day-to-day operations. OUR PEOPLE | ABOVE DIRECTV employee Tracy Tibbels learns best practices at a Human Resources conference. Photo credit: Jessica Sterling. As part of our diversity and inclusion strategy, we measure and monitor workforce representation. This allows us to benchmark DIRECTV with the U.S. labor pool, in terms of both female and minority representation. Linda Simon Senior Vice President Leadership and Organizational Development DIRECTV Mike White Chairman, President and CEO DIRECTV As part of our commitment to diversity and inclusion in the marketplace, our procurement team developed a program during 2012 to identify and attract women- and minority-owned suppliers that support our business needs. 69 Hiring Our Heroes We recruit veterans by participating in targeted events and leveraging various online recruitment strategies. For example, DIRECTV partnered with Military Crosswalk to build a microsite (directv-veterans.jobs), where veterans can search our job opportunities using tools that allow them to match our openings against military titles. We have also participated in virtual career fairs enabling us to reach a broader population of veterans and their families for our various opportunities across the country. These are some of the ways we’re committed to attracting and hiring qualified veterans as they re-enter the workforce. Looking ahead, DIRECTV will join the Military Spouse Employment Partnership in 2013. This will provide an opportunity to further broaden our outreach to military spouses, and partner with other companies to share best practices, resources and support. Beyond recruitment, DIRECTV financially supported the following veterans’ organizations in 2011-2012: • Wounded Warrior Project • VFW Foundation • Operation Homefront • USO of Metropolitan New York • For the Troops | DIRECTV is committed to veterans support. Military veterans have proven they are dedicated and hard-working, and that they get the job done. DIRECTV values these qualities and veterans’ unique experience. We are dedicated to helping veterans transition from military to civilian careers as part of our commitment to the communities where we do business. 70 Rosanne Setoguchi Director of Talent Acquisition DIRECTV Our internship program continued to secure a diverse pool of talent in 2011 and 2012, thanks in part to relationships we have forged with universities and organizations that value diverse talent as much as DIRECTV does. In 2012, for example, we held job fairs and networking opportunities in California with the University of California, Los Angeles Society of Women Engineers, California State Polytechnic University Pomona’s National Society of Black Engineers and Society of Hispanics in Science and Engineering, and the University of Southern California’s Latino Business Student Association. Additionally, we work with nonprofit partners such as the T. Howard Foundation and All Stars Project—organizations whose missions include developing and placing talented underserved youth in careers at leading companies—to source diverse talent. DIRECTV received the 2011 Corporate Leadership Award from the T. Howard Foundation, which works to diversify the multimedia and entertainment industry by increasing the representation of minority young men and women, and has provided internship opportunities to college students each year since 1995. Moving forward, we aim to offer up to 30% of top-performing internship program alumni the opportunity to continue their employment at DIRECTV full-time. DIRECTV U.S. INTERNS 2011 2012 MALE 66%* 64% FEMALE 34%* 36% MINORITY 53%* 54%* | Members of DIRECTV’s Young Professionals Network’s kickball team in Los Angeles. “At DIRECTV, our vision and our diversity go hand-in-hand. We could not succeed without talented employees from many countries and cultures, and of different ages and interests.” OUR PEOPLE In 2012, DIRECTV joined the 100,000 Jobs Mission, a coalition of leading U.S. companies that share the goal of collectively hiring 100,000 transitioning service members and military veterans by 2020. Member companies provide resources, report on the number of veterans hired and share recruitment best practices. By year-end 2012, the coalition had hired 51,835 veterans and was more than halfway toward achieving its goal. DIRECTV began tracking the number of veterans we hired in mid-2012, and in the second half of 2012, we hired nearly 160 veterans. We plan to continue this commitment in 2013 and beyond. “Joining the 100,000 Jobs Mission was a natural progression for DIRECTV, because we’ve always valued the veterans supporting our company for their unique qualities and experience.” Building Our Future Workforce In the United States, the development of our future workforce is a key element of our talent recruitment and retention strategy. Our internship opportunities provide students with roles as key contributing members of diverse teams across the organization while developing their skills and building their knowledge. Mike White *Percentage of interns who voluntarily reported this information. Chairman, President and CEO DIRECTV 71 Developing Our Workforce To help our employees entertain their future at every stage of their career journey, DIRECTV provides tools, resources and development programs. DIRECTV’s Leadership Formula is the foundation for all employee development and the scorecard for successful performance and career progression. | LEFT Employees from the Latino Network Connection employee resource group. | BELOW Employees from DIRECTV's OUTlook employee resource group, which supports lesbian, gay, bisexual and transgender (LGBT) employees, and those who support the LGBT community. Photo credit: Jessica Sterling. “At DIRECTV, we promote a culture of continued learning, growth and development for our employees, so they can deliver their best to entertain the future and win customer loyalty for life.” Executive Vice President and Chief Human Resources Officer DIRECTV 72 • Sets performance expectations and charts a course for career progression at DIRECTV • Defines specific competencies and leadership attributes by which employees are measured • Defines successful leadership at every level within the company Leadership Development and Leadership Foundations Programs Our U.S. Leadership Development Program is a transformative, week-long program that gives participants the opportunity for intense focus on developing themselves and their teams to improve organizational performance by building skills to lead at the next level. In 2012, we launched a similar Leadership Foundations Program for our Latin America employees to build specific leadership skills around strategic imperatives for DIRECTV Latin America. Coaching and Leadership Essentials Through a multi-day, in-person course supplemented with online pre-work and offline follow-up tools, this course establishes a consistent, simple and effective coaching model to support the organizational effort to build talent. An advanced version of this program positions “leaders of leaders” to leverage and support the skills learned by their direct reports in Coaching and Leadership Essentials. Facilities Tours for Home Service Employees In Southern California, technicians, dispatchers and warehouse employees from the field, as well as key leaders from our Latin America Field Services teams, have an opportunity to gain a broader perspective on DIRECTV’s broadcast and engineering operations facilities. Through these opportunities, participants learn how our satellite broadcast and set-top box systems work and gain insight on how the company is managed. In 2012, nearly 700 U.S. Home Services employees participated. Leadership and Diversity: Accelerating the Careers of Women at DIRECTV As part of DIRECTV Argentina’s commitment to strengthening its ranks of female leaders, it launched “Leadership and Diversity: Accelerating the Careers of Women at DIRECTV” in 2011. The program supports women in their career development through training, coaching and networking opportunities. Executives in the Field Starting in 2012, all DIRECTV vice presidents and above were asked to spend time in the field with DIRECTV Home Services technicians and call center agents, to better understand what it takes to provide an outstanding customer experience. EVALUATING PROGRESS In our Enterprise business unit, all employees meet with their supervisors for mid-year and end-of-year discussions to evaluate performance and identify objectives for the coming year. Our front-line employees in our Customer Care and Field Services business units also receive regular feedback from their supervisors around key performance metrics. Additionally, as part of our heightened focus on career development across the company, more than 1,000 DIRECTV leaders were evaluated as part of our 2012 Talent Review process. This process expanded in 2012 to include employees at the manager level and above (at the supervisor level for certain parts of the company). Also in 2012, the process incorporated gender and ethnicity data to ensure that we continue to build and develop a diverse talent pipeline. This process aims to better empower leaders to manage the talent on their teams. OUR PEOPLE Joe Bosch The DIRECTV Leadership Formula: Our experience shows that employees who participate in our leadership development programs not only become effective leaders themselves, but also inspire other talented individuals to do the same. Some of our unique leadership initiatives that foster higher levels of engagement, cross-functional collaboration and innovation include: 73 Employee Resource Groups – Fully Engaging Our Diverse Workforce DIRECTV’s success is critically dependent on a constant stream of innovation, and that depends on having diverse ideas, fresh thinking and an inclusive workplace culture that drives collaboration, productivity and engagement. To support this, DIRECTV encourages the formation of Employee Resource Groups (ERGs), employee-organized groups that support the professional and personal growth of employees with common interests. These groups are aligned with the company’s vision, mission, values and goals, and are inclusive and open to all employees who support a group’s mission. Young Professionals Network Provides diverse opportunities to support the transformation of today’s young professionals into tomorrow’s leaders through opportunities for employees to develop professional skills, give back to the community, network and exchange ideas. Sponsored by Joe Bosch, Executive Vice President and Chief Human Resources Officer. Latino Network Connection Committed to fostering the professional growth and career development of Latino employees and their supporters through professional development programs to strengthen and broaden their skill sets through speakers, networking, events and volunteer opportunities. Sponsored by Jacopo Bracco, President, DIRECTV PanAmericana. Our diverse community of ERGs enhances our workforce through networking and development, our workplace through an inclusive culture, and our marketplace through employee giving and volunteering. Currently operating at select U.S. sites, we are in the process of establishing guidelines for the expansion of ERGs for interested employees at additional locations. “Our first Employee Resource Group started at the grassroots level seven years ago. Today, ERG members are shaping our diversity and inclusion strategy, developing leaders and furthering DIRECTV’s success in the marketplace.” Caroline Leach “The Women’s Leadership Exchange pioneered mentoring at DIRECTV and provides valuable development opportunities for both female and male members of our workforce.” Dan York Vice President, Communications DIRECTV Executive Vice President of Programming and Chief Content Officer DIRECTV DIRECTV currently has four ERGs, each championed by an executive sponsor. They are listed here in the order they were formed: DIRECTV OUTlook Supports lesbian, gay, bisexual and transgender (LGBT) employees and those who support the LGBT community. DIRECTV OUTlook is committed to supporting equality and an open, inclusive workplace where all employees can thrive and contribute to DIRECTV’s success. Sponsored by Paul Guyardo, Executive Vice President and Chief Revenue and Marketing Officer. OUR PEOPLE “The DIRECTV OUTlook group has given a voice to our LGBT employees and helped make DIRECTV a more inclusive place to work. The group has advocated for changes to company policy that have increased benefit parity and enhanced our ability to recruit top talent.” Women’s Leadership Exchange Supports career-related opportunities for women and their supporters through building a culture that attracts, develops and enhances the experiences of employees, including mentoring, networking, events and more. Sponsored by Dan York, Executive Vice President of Programming and Chief Content Officer. Paul Guyardo | Employees from DIRECTV's OUTlook Employee Resource Group participated in the 2012 AIDS Walk New York. 74 Executive Vice President, Chief Revenue & Marketing Officer DIRECTV 75 Recognition for Diversity and Inclusion T. HOWARD FOUNDATION RECOGNIZES DIRECTV WITH CORPORATE LEADERSHIP AWARD DIRECTV received the T. Howard Foundation’s 2011 Corporate Leadership Award for its commitment to providing internships and opportunities to diverse college students. The T. Howard Foundation works to diversify the multimedia and entertainment industry by increasing the representation of young minority men and women, and has provided internship opportunities to college students every year since 1995. DIRECTV EARNS TOP-TIER RATING IN HUMAN RIGHTS CAMPAIGN CORPORATE EQUALITY INDEX In partnership with DIRECTV OUTlook, our Employee Resource Group for LGBT (lesbian, gay, bisexual and transgender) employees and their supporters, DIRECTV participates in the Human Rights Campaign’s annual Corporate Equality Index (CEI) as part of our ongoing commitment to fostering a diverse workforce and inclusive workplace. In 2011, DIRECTV participated in the CEI for the first time. Our 2013 rating is 95 out of 100, which reflects more transparency in reporting and making strides in benefits parity. This is in the CEI’s “green zone,” where top-scoring companies are recognized for LGBT-inclusive practices in the workplace and marketplace in areas including employee benefits, workplace culture and philanthropic efforts. | Employees at DIRECTV's El Segundo, Calif. headquarters. DIRECTV’s commitment to creating and sustaining a great workplace was recognized in 2011 and 2012 in both the U.S. and Latin America. Additionally, many of DIRECTV’s specific country operations were honored by Great Place to Work in 2011 and 2012: DIRECTV NAMED GREAT PLACE TO WORK IN LATIN AMERICA • SKY Brazil, 93% owned by DIRECTV, was honored as number 73 on the list of Best Large and Multinational Companies in Brazil for 2012. DIRECTV Latin America has received recognition from the Great Place to Work® Institute, which conducts annual research based on data representing more than 10 million employees in 50 countries from about 6,000 organizations of varying sizes, industries, maturity and structures. The findings from the research and data are used to create lists of the best companies to work for. 76 • DIRECTV Ecuador was ranked as the 19th Best Company in the country in 2012, an improvement from their 2011 ranking as 29th. • DIRECTV Uruguay was named Best Company in Uruguay for 150 or fewer employees in 2012, an improvement from its ranking as 5th in the Best Small Company in Uruguay category in 2011. DIRECTV was selected for inclusion in Towers Watson’s 2011 and 2012 U.S. High-Performing Companies Norm, based on DIRECTV’s superior financial performance and people practices. Towers Watson defines financial performance by net profit margin and/or return on invested capital that exceeds industry averages. Superior people practices are defined by employee survey scores near the top of the most financially successful companies surveyed by Towers Watson. DIRECTV’s 2012 Organizational Health Survey results achieved the level of other high-performing U.S. companies surveyed by Towers Watson in multiple areas, including employees’ assessment of company management supporting diversity in the workplace. | TOP LEFT Jacopo Bracco, president of DIRECTV PanAmericana, speaks at a Latino Network Connection event in Los Angeles. | TOP RIGHT DIRECTV Latin America Human Resources employees at a conference in 2012. | ABOVE Employees at a mentoring event in Los Angeles hosted by DIRECTV's Employee Resource Groups. Photo credit: Jessica Sterling. OUR PEOPLE In 2012, Great Place to Work named DIRECTV Latin America as one of its Top 25 Multinational Companies to Work For in Latin America because we exhibit high levels of trust, employee engagement and best-applied management practices and programs. • DIRECTV Colombia received recognition in 2012 as 8th on the list of Best Companies in Colombia with more than 500 employees− an improvement from its 2011 ranking as the 11th Best Company in Colombia. TOWERS WATSON ADDS DIRECTV TO U.S. HIGH-PERFORMING COMPANIES NORM 77 GRI Index: DIRECTV 2011-2012 Corporate Social Responsibility Summary (U.S. Performance) Supporting Diverse Communities INDICATOR DIRECTV believes it is important to invest in organizations that support the diverse communities where our employees live and work. We accomplish this through direct contributions to diverse nonprofit partners and by supporting employees in their commitment to diverse organizations with programs such as Gift Matching, volunteer grants and the DIRECTV System Donation Program. Ability First American Association of People with Disabilities Asian Pacific Legal Center Black Women Lawyers Association Broadway Cares Catalyst East Los Angeles Women’s Center Human Rights Campaign Japan Society LA Gay and Lesbian Center La Raza Services Los Angeles Brotherhood Crusade Minority Media & Telecommunications Council New Alternatives for Children Nosotros Special Olympics T. Howard Foundation The Trevor Project UJA-Federation of New York PARTIAL DISCLOSURE FULL DISCLOSURE MORE INFORMATION 2011 RESPONSE 2012 RESPONSE • U.S.: 15,900 full-time; 300 part-time • Latin America: 9,600 full-time; 1,000 part-time • Sports Networks: about 200 full-time • Total: 27,000 • U.S.: 15,000 full-time; 500 part-time • Latin America: about 12,000 full-time; 2,000 part-time • Sports Networks: about 200 full-time • Total: 29,700 More information about our workforce can be found on page 19 of DIRECTV’s 2012 Form 10-K statement • U.S.: 37% diverse; 30% female • Latin America: 52% female • U.S.: 38% diverse; 30% female • Latin America: 53% female Learn about our diversity and inclusion commitments in this report. See Diversity by the Numbers, pg. 69 Economic information can be found throughout the Corporate Citizenship section of this report as well as in our 2012 10-K statement. Economic information can be found throughout the Corporate Citizenship section of this report as well as in our 2012 10-K statement. Learn about our corporate citizenship investments in this report. See pages 11 through 46 SOCIAL LA1 LA13 These are a few of the organizations we supported in 2011 and 2012 that are committed to fostering diversity-related causes. • • • • • • • • • • • • • • • • • • • DESCRIPTION Total workforce by employment type, employment contract and region Composition of governance bodies and breakdown of employees per category by gender, age group, minority group membership and other indicators of diversity ECONOMIC EC1 EC8 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement In addition to cash donations to nonprofits and key initiatives, from 2011 to 2012, DIRECTV: • Invested $11.3 million in DIRECTV GOES TO SCHOOL programming and committed to nearly $600,000 worth of skills-based and pro bono volunteer service Learn about how DIRECTV supports the community through volunteerism and giving programs in this report. See pages 24 through 37 • Matched, dollar-for-dollar, more than $2 million in personal donations made by DIRECTV U.S. employees to more than 1,100 nonprofit organizations across the country • Awarded 200 DIRECTV Scholarships worth at least $3,000 each to eligible dependent children of employees | DIRECTV employee Rosa Diaz and her son participate in a 5K to support PADRES Contra El Cancer (Parents Against Cancer). 78 79 GRI Index: DIRECTV 2011-2012 Corporate Social Responsibility Summary (U.S. Performance) INDICATOR DESCRIPTION PARTIAL DISCLOSURE FULL DISCLOSURE 2011 RESPONSE 2012 RESPONSE MORE INFORMATION ENVIRONMENTAL EN1 EN2 Percent recycled input materials (marketing paper only) EN3 Direct energy consumption (MWh) EN4 Indirect energy consumption (electricity), (MWh) EN16 Total direct and indirect (Scope 1 and Scope 2) greenhouse gas emissions (metric tons carbon dioxide equivalent) EN17 EN19 EN22 EN23 80 Materials used by weight (marketing paper only), lbs Other relevant indirect (Scope 3) greenhouse gas emissions (metric tons carbon dioxide equivalent) Emissions of ozone-depleting substances (metric tons) Total weight of waste by type and disposal method (tons) Total number and volume of significant spills, number 41,030,00 73% 83% 432,100 171,200 Learn more about our climate change initiatives in this report. See pages 52 through 58 215,601 194,018 Learn more about our climate change initiatives in this report. See pages 52 through 58 Business travel: 10,500 Upstream transport: 36,045 Downstream transport: 24,642 Business travel: 11,380 Upstream transport: 34,552 Downstream transport: 19,870 Use of sold products: 396,896 Leased assets: 3,231,356 Learn more about our climate change initiatives in this report. See pages 50 through 51 and 64 through 65 0.02 (HCFC-22) Learn more about our climate change initiatives in this report. See pages 52 through 58 170,200 17 Learn more about our paper recycling practices in this report. See pg. 62 Learn more about our efficiency practices in this report. See pages 52 through 58 469,000 40,463,000 Learn more about our paper recycling practices in this report. See Optimizing Paper Use on pg. 62 0.06 (HCFC-22) Waste: 6,567 Recycling: 3,962 Waste: 5,979 Recycling: 4,352 0 0 17 The figure for our 2011 U.S. GHG inventory is higher than what we previously reported. In our 2011 Statement of GHG Emissions, we noted that we had excluded Local Collection Facility energy consumption and emissions. We have now calculated the associated emissions, and, consequently, our total emissions increased. Learn more about our waste disposal practices in this report. See pages 59 through 63 Learn more about our Corporate Social Responsibility efforts at directv.com/responsibility CORPORATE CITIZENSHIP SUSTAINABILTY OUR PEOPLE The printed version of this brochure features the Mixed Sources label, which supports the development of responsible forestmanagement worldwide. The paper consists of wood from FSC-certified, well-managed forests,recycled material and/or controlled wood, all of which come from non-controversial sources.