Syriatel – Nation`s Leading Telecommunications Services Provider
Transcription
Syriatel – Nation`s Leading Telecommunications Services Provider
2013 Contents About Our Reporting 05 CEO Message 07 Syriatel – Nation’s Leading Telecommunications Services Provider 08 Syriatel in Numbers 11 Innovative Products and Services 12 Fair and Clear Pricing 14 Our Approach Introduction and Strategy 16 18 Syriatel’s Sustainability Journey 18 Progress Against Our Strategic Priorities 18 Engaging with Stakeholders 19 The Importance of Stakeholder Engagement 19 Mechanisms of Engagement 19 Materiality 21 Our Governance 21 Code of Corporate Governance Ethics and Code of Conduct 22 23 Building Sustainable Relationships with Our Customers 24 Contributing to Local Development 28 Our Economic Contribution 30 The Value of Local Partnerships 30 Our Role in Education and Cultural Community Development 31 Neighborhoods and the Environment 35 Enabling a Low Carbon Society, Minimizing Our Own Footprint 36 Clean Energy 38 Measuring our Carbon Footprint 40 Recycling Investing in Our People 41 42 Employment, Diversity and Inclusion 44 Training and Development 46 Health and Safety 46 Employee Satisfaction 46 4 Syriatel Sustainability Report 2013 About Our Reporting Reporting on our social and environmental performance is a key part of building a sustainable business. This is our fourth sustainability report which aims to provide both internal and external stakeholders including shareholders, employees and current and potential customers with a view of our position and performance on sustainability related matters. The report has been prepared according to the G3.1 Reporting Guidelines of the Global Reporting Initiative (GRI), an independent institution that provides a standard framework for sustainability reporting across all industries. We have used these Guidelines to help us identify key topics for the report. The reporting period is 1 January to 31 December 2013. Being a uniquely Syrian company with no interests outside the country, this report covers operations in Syria only. For more information, please contact us at [email protected] Syriatel, Syriatel Office Damascus, Syria Landline: +963 (0) 11 237 30000 Mobile: +963 93 322 2111 Syriatel Sustainability Report 2013 5 Our vision ‘to be the Syrian Company of Choice’ emphasizes our direction to contribute to the positive transformation of the Syrian community, as well as to ensure a preferred workplace for our people. 6 Syriatel Sustainability Report 2013 CEO Message The theme of our 2013 Sustainability Report “Connecting Communities” reflects our mission “to provide the best mobile communications experience for our customers; empower and satisfy our people; achieve sustained value creation for shareholders, and passionately contribute for a better Syria”. It is our ability to create long lasting shared value — economic, social and environmental — with all our stakeholders, that will deliver business success for Syriatel in the future. Our sustainability development has been developed in line with company’s mission and vision, and this report discusses our key priorities, related initiatives and progress achieved in 2013. Performance efficiency Achieving greater operational efficiency and cost savings is a key driver behind our sustainability efforts. We have implemented three international standards to help us reach our goals in this direction. We are in process of implementing a Balanced Scorecard tool that will help us streamline and focus our strategic direction, improve internal and external communications and monitor corporate performance against strategic goals. the necessary shift towards a sustained low-carbon future, we communicate our activities with various societal groups from elementary students to policy makers. Transforming the Syrian community Syriatel has an important role to play in transforming and advancing the Syrian community. We believe a strategic approach to community development, one that links philanthropy directly with corporate strategy and its related goals, has the potential to deliver long term value. Numerous initiatives in 2013 supported the Syrian youth by focusing on training and development. Syriatel has participated actively in two employment fairs to help bridge the gap between academia and business by providing qualified students with potential job opportunities. A specialized team from Syriatel conducted workshops for many university students to enhance their knowledge in areas such as customer service, sales and marketing, human resources and quality management. Building trust through love Investing in our people We want our customers to enjoy a wide variety of services and we also want them to be confident that they can do this without risk. As a mobile telecommunications provider it is our duty to ensure that robust data security and strong privacy policy are in place. We are implementing ITIL for improved IT service management as well as the Information Security Management System ISO 27001 to further assure our customers. Our people are the backbone of our success. Our goal is to retain and recruit the most motivated and talented people and we aim to do so by providing a good working environment, offering attractive incentives and development opportunities, and treating people with respect. Climate change In 2014, we will continue the efforts to further develop our understanding of how our sustainability activities drive value-creation for our business, and in turn create shared value for all our stakeholders. To mitigate effects of climate change, we are making progress by introducing clean technology to our operations. We have introduced wind and solar energy in the coverage network achieving average savings of around 60% in energy purchase from the grid. Our goal is to expand clean energy implementation to cover 20% from our network in 2014 including Hybrid (solar/wind ) solutions. Looking ahead We welcome your views and feedback on our sustainability journey. Magda Sakr CEO, Syriatel In an effort to encourage a broader understanding of Syriatel Sustainability Report 2013 7 Syriatel — Nation’s Leading Telecommunications Services Provider 8 Syriatel Sustainability Report 2013 Syriatel Sustainability Report 2013 9 10 Syriatel Sustainability Report 2013 Syriatel has been the leading operator of the Syrian Mobile network since 2000. Our 1647 employees now serve more than 7.4 million customers across Syria To support our vision ‘to be the Syrian Company of Choice’, Syriatel has invested heavily in developing and advancing a wide range of communications services. We put you – our customer – at the heart of everything we do and work to provide a flexible suite of services for both corporate and personal use. Our efforts to provide you with high quality products and services which meet your needs and help you stay connected at a reasonable price, are underpinned by a consistent set of values and behaviors for all Syriatel’s employees: Team Spirit We are proud to be part of a winning team. We energize, involve and inspire each other, and we seek ideas, share solutions and overcome challenges together. Excellence We strive to excel in every aspect of our business and approach every challenge with a determination to succeed. Customer Focus Committed to satisfy our customers’ needs and interests. Integrity Each of us is personally accountable for the highest standards of behavior in all aspects of our work. Ownership Engagement, participation & understanding of our role as a responsible Corporate Citizen. Passion We show pride, enthusiasm and dedication in everything we do. At Syriatel, we are committed to constantly improve our services and operations in line with the development of local regulatory requirements and international standards, to meet the diverse expectations of our stakeholders. Syriatel in Numbers 1,647 Employees 3,593 Telecom locations 25 Points of service 7.4 million Customers across Syria 9,000 Customers queries answered/day 3 Call centers 2 Headquarters in Damascus and Sahnaya 28 4 Offices Warehouses Respect We show a polite attitude towards ourselves & everyone at all levels. We treat people with respect and dignity. Syriatel Sustainability Report 2013 11 Innovative Products and Services Customers are at the heart of our sustainability strategy. We strive to provide our customers with innovative and flexible products and services, and to meet their needs wherever they are. We believe that our technological solutions can help build a more sustainable society by bridging needs and creating conditions where business can prosper. In 2013, we launched and modified some of our current products and services to better match our customers’ expectations and requirements. Switching Between SURF Packages Through My Syriatel 2012 Postpaid Customers Refund Syriatel lunched this feature in February 2013 to enable SURF postpaid customers to switch between SURF packages by visiting My Syriatel website and choosing one of the packages that they wish to switch to. The available packages are Pay As You Go (100 MB), Light Users (1 GB), Light Users (2 GB) and Medium Users (3 GB) In June 2013, Syriatel, in cooperation with the Syrian Telecom Company “STC”, offered 2G and SURF postpaid customers whose areas were adversely affected by the coverage problems in 2012 free bundles and discounts on their invoices. This process was defined according to the mechanism agreed upon with the Syrian Telecom company Jan Feb Mar Syriatel SURF Distribution Network Syriatel has been expanding the network of SURF prepaid cards’ distribution channels since February 2013. With the expanded SURF network, connecting to the internet on mobile has never been easier. The customer can get a new SURF prepaid card through visiting one of the authorized Syriatel dealers, Syriatel minipoints of service, and Syriatel points of service 12 Syriatel Sustainability Report 2013 Apr May Jun Syriatel Rolls Out The New 2 GB SURF Postpaid Package In May 2013, Syriatel launched the 2 GB package tailored to the needs of SURF postpaid customers who had moderate internet usage Modification of Mobile Products and Services Tariff In cooperation with the Syrian Telecom Company “STC” Syriatel announced the modified tariff which became effective on 1 September 2013. The modification of Syriatel’s products and services tariff aims at enabling Syriatel to maintain the sustainability of its mobile network and keep providing high quality services. Data Calculator Application For SURF Postpaid Customers In September 2013, Syriatel offered an application on SURF and My Syriatel websites. The new application, Data Calculator, helps the customers to choose the best package for their internet usage by estimating their daily\monthly consumption of SURF 3.5G internet. Whether the connection to the internet is through a computer or a smart phone, the application will be able to provide the customers with the estimated usage The decision to modify the tariff was due to the hard times which had befallen our beloved country, and which resulted in a drastic increase in all prices which, in turn, led to an increase in the capital and operational expenses, especially those related to operating the cell sites, maintaining and upgrading the cellular network and reconstructing its damaged sections. Bigger Internet Packages At The Same Prices For SURF Postpaid Customers The new tariff, which is the result of a thorough study, is designed to partially counterbalance the increase in expenses on the one hand, and take the financial circumstances of the Syrian citizen during this difficult period into account on the other hand Jul 111 Services List In August 2013, Syriatel launched this service which enables its customers to activate and cancel most of the Syriate services through dialing the free short code *111# and browsing the menus, rather than calling 111 or 222. This service is available to all Syriatel customers. Aug In November 2013, Syriatel designed bigger packages at the same old prices for SURF postpaid customers. By using the new packages, which are tailored to the needs of all Syrian internet users, SURF users can make more savings Sep Oct Nov Dec Switching Between SURF Packages Through Dialing *200# In September 2013, Syriatel offered postpaid lines the chance to switch between SURF packages simply by dialing the free short code *200#. The customers need to insert SURF postpaid card into a handset compatible with 3G services. After that they can choose one of the packages that they wish to switch to. The available packages are: Pay As You Go (100 MB), Light Users (1 GB), Light Users (2 GB), and Medium Users (3 GB). Syriatel Sustainability Report 2013 13 Fair and Clear Pricing Trust in Syriatel depends on the reliability of our products and services, managing customers’ privacy and safety, and setting a clear, transparent and fair pricing. We are committed to provide convenient packages which enable you to make considerable savings in your consumption 100 2013 Market Share Data Number of customers by Service Active Sub Market Share 78.73% 80 60 54.61% 45.39% 40 2013 Prepaid 2G 6,409,424 6,446,603 Postpaid 2G 435,550 344,551 Prepaid 3G 182,037 573,055 Postpaid 3G 111,621 108, 653 7,138,632 7,472,862 Total 21.27% 20 0 2012 2G Active Sub Market Share 3G Active Sub Market Share Syriatel Market Share 5% 8% 1% MTN Market Share 100 Postpaid Active Sub Market Share 80 79.29% 75.93% 86% 60 40 24.07% 20.71% 20 0 2G Postpaid Active Sub Market Share 3G Postpaid Active Sub Market Share Syriatel Market Share MTN Market Share 14 Syriatel Sustainability Report 2013 Prepaid2G Postpaid 2G Prepaid 3G Postpaid 3G Syriatel Sustainability Report 2013 15 Our Approach 16 Syriatel Sustainability Report 2013 Syriatel Sustainability Report 2013 17 Introduction and Strategy Syriatel’s Sustainability Journey We began our sustainability journey three years ago with the publication of our first Corporate Sustainability Report using the Global Reporting Initiative (GRI), the most widely adopted guidelines for sustainability reporting. Issuing the report enabled us to monitor and measure key performance indicators. Monitoring and managing these social and environmental performance indicators gave us the inputs needed to develop initiatives and projects to improve our sustainability performance. In this report we discuss several initiatives in detail, and explain how they contributed to improving our overall performance. At Syriatel we view sustainability as a constant journey towards improvement. We are proud of being the first company in Syria to issue a sustainability report, but we are also aware that this is only the beginning of our journey. We plan to continue developing our internal understanding of sustainability challenges, as well as raise awareness within the community about the importance of corporate sustainability. Progress Against Our Strategic Priorities The table below presents our progress against our stated 2013 objectives. Partially achieved .Achieved .Ongoing Element 2013 Objective Financial Grow earnings per share Strive to maintain communications lines open and functional to all our customers across Syria Solidify our position as the leading telecommunications operator in Syria Improve overall service performance by: • Increasing number of services provided by our Mini POS’s • Increasing effectiveness of electronic communication channels Commercial & Service Environment Begin utilizing renewable energy in our BTS’s Social Launch new social initiatives Progress Performance challenge to secure highest standard of communication network Technical Upgrade network capacity by increasing number of 2G and 3G base stations Prepare effective network management plan in crises situations Expand IP Technology Administrative Syriatel Sustainability Report 2013 Complete implementation of the Information Security Management System (ISMS) in accordance with ISO 27000 requirements Automate balance “scorecard” system Improve employee capability and development approach by increasing number and methods of training activities 18 We are proud of our achievements during the past year, however we will not rest on our achievements as we will aim to continuously improve our performance. In addition to continuing our progress towards achieving all of last year’s targets, we are adding the following goals for 2014: Element 2014 Objective Financial Maintain sustainable financial growth Marketing Promote Syriatel as leisure and entertainment service provider Environment Increase utilization of renewable energy Commercial Services Increase capacity and effectiveness of customer service and distribution channels Technical Continue upgrading operations, policies, and practices in line with best practice standards Begin upgrading network to LTE 4G Engaging with Stakeholders The Importance of Stakeholder Engagement Sustainability among many things is about inclusiveness and taking into consideration the impact of a corporation’s activities on the society and environment where it operates. To that end, stakeholder engagement and inclusiveness is a key element in any effective sustainability program. This is reflected in several sustainability reporting guidelines, including GRI where Stakeholder Inclusiveness and Materiality are the two key elements in defining report content. At Syriatel stakeholder engagement is a key element in our sustainability journey. Mechanisms of Engagement Once we have prioritized our stakeholders, we determine the most effective ways to engage them to understand their needs and capture their expectations. The results of our stakeholder engagements were considered when analyzing our materiality and determining most important aspects to include in our report. Due to the diversity of our identified stakeholders, we have several communication methods specifically chosen to fit the unique requirements of each of them. The table below shows our key stakeholder groups along with communication method and frequency. To realize our stakeholder’s expectations we followed best practice of first identifying our stakeholders, then prioritizing them based on their influence on our operations, and our operation’s impact on them. Syriatel Sustainability Report 2013 19 Stakeholders Goals Communication Channels Frequency Outcome Communities We support community development programs and initiatives to ensure the well-being of our local communities where we operate. • Syriatel Corporate Social Programs • Ongoing A more directed pursuit towards bettering our local communities with more specific programs to ensure community development. Business Partners We strive to be honest and fair in all our business dealings. Our code of conduct guides us, and we seek to establish and maintain productive business partnerships. • Annual Reports • Annual • Face to face meetings • Regular Develop existing and establish new partnerships creating better economic prospects for local businesses and Syriatel NonGovernmental Organizations (NGOs) We engage with NGOs to ensure our daily operations are in line with community expectations and sustainable business practices • Group Meetings • Regular Improved company image and compliance within our surrounding environment from NGO’s perspective whose objective is to review the effects of our sustainability commitments Government & Regulators We engage with government and regulators to modernize our business operations in compliance with laws and regulations to guarantee minimum standards and business ethics are adhered to. • Legislative dialogue • Ongoing • Regular Compliance Reports • Regular All aspects of our daily business operations are in compliance with local regulations promoting Syriatel’s stakeholder perceptions and benefiting our operations Customers We seek to understand our • Syriatel customer satisfaction surveys customers’ needs in order to • Syriatel customer focus groups guarantee their satisfaction and best services experience • Website across all business lines. Our operations conduct regular customer satisfaction surveys at the local level to understand customer’s needs. • Semi Annual Employees We are committed to • Team meetings fostering workplaces that are safe and professional and that promote teamwork, diversity, communication, personal development and trust • Regular Maintaining our employees’ satisfaction and motivation and improving work efficiency while ensuring future prospects within the work environment. Investors We communicate our latest financial results, market development, and business strategy with our investor community. • Annual investor meetings • Annual • Quarterly financial updates • Quarterly • Individual meetings • Ongoing Creating trust within Syriatel’s abilities to perform well, allowing our investors to make more informed investment decisions 20 Syriatel Sustainability Report 2013 • Philanthropic Investments • Social Workshops • Ad-hoc • Ad-hoc Promoting our brand loyalty and customer satisfaction which benefit our market growth and customer base. Developing our knowledge and understanding of our customers to better tailor our products to their individual needs. Materiality Materiality analysis is the process followed by an organization to determine the most important or “material” aspects to include in their sustainability report. For an organization to have an effective sustainability program, a materiality analysis ensures the organization’s significant economic, social and environmental impacts are addressed. The materiality analysis considers inputs from various stakeholders, as well as GRI sector supplements, and best practice research. Materiality is one of the most important principles for defining sustainability content. Going forward we are committed to develop and implement a comprehensive materiality analysis involving both internal and external stakeholders. Due to factors outside of our operations, we were only able to conduct an internal materiality analysis this year utilizing inputs from senior management. Our key priority issues identified include the following: Quality and continuity of service Responsible Marketing Transparency and fair pricing Customer Care Economic Performance Green Telecommunications Accessibility Ethics and code of conduct Health and Safety of employees We acknowledged a variety of other issues that could be material to our operations – e.g. governance, supply chain management, diversity of employees, gender balance, and climate change - and we are committed to address these and the rest of our stakeholders’ concerns in the future. For the purpose of this report, we have focused on our high priority topics. Our Governance Syriatel is governed by a Board of five members, most of whom are Syrian. The responsibilities of the Board include setting the overall corporate strategy, and aligning it with stakeholder interests. The seven unit heads along with the CEO are charged with outlining the strategic direction of the company using inputs from the Board of Directors. Leading the operations of Syriatel is the responsibility of nine department directors who are accountable for implementing the corporate strategy. The Investor Relations Unit is responsible for anticipating and capturing the expectation of shareholders and relaying them to the CEO and Board of Directors for action. Our employees are considered a key stakeholder and we encourage an open communication channel between them and management at all times. Sustainability Strategy Privacy and data protection Syriatel Sustainability Report 2013 21 Code of Corporate Governance At Syriatel we understand and value the importance of a robust governance structure. Our Code of Corporate Governance outlines policies and regulation that ensure fairness and transparency internally, and is in alignment with the Syrian Corporate Governance Act. The Code clearly states the responsibilities of Syriatel towards our stakeholders, as well as the duties and restrictions on the Board of Directors and executive team. The code also ensures everyone is clear on conflict of interest policies and procedures. The nine provisions of the Code are summarized below: • Shareholders: This element defines the role of the Investor Relations Unit, and lists the general shareholder rights and duties, access to information and the main frames of the Annual General Assembly • Board of Directors: This element defines the BOD composition and structure, their tasks, responsibilities, competencies, and restrictions • The External Auditor: Main role of the auditor and appointed process • Stakeholders: This element defines the role of the BOD and the company toward its stakeholders, bondholders, and creditors • Executive Management: This element defines the responsibilities of the internal auditor and appointing process • Disclosure and Transparency: This includes the required steps to issue the corporate annual report, within the time frame, and setting the disclosure policy • Audit Committee: This element defines the Audit Committee composition and structure, their tasks, responsibilities and competencies • Syriatel Code of Ethics and Business Conduct: This element is created for Syriatel employees as general guide in order to support the great interest and moving the company from good to great CEO Investor relations Internal audit Regulatory and Government Affairs Contracting and Legal Advisory System Assurance Corporate Planning Information Security and Business Continuity Unit Customer Service 22 Marketing Sales Syriatel Sustainability Report 2013 MIS Technical Finance Human Resources Quality Procurement Ethics and Code of Conduct At Syriatel we conform to strict ethical guidelines and we constantly strive to ensure all of our employees adhere to our Code of Conduct. To achieve this target, all new employees must complete an orientation program which includes an introduction to our company culture, code of conduct, and company policies including employees’ rights. In addition to that, all employees, including management, must attend specialized anti-corruption training to make sure all employee levels are aware of our strict AntiCorruption policy. This is a delicate matter, and a challenge for every organization to enforce. Therefore we developed a “whistleblower” protection system to preserve the anonymity of people coming forward to report suspicious activities. We believe this system will foster trust in our organization and increase operational transparency. Being a telecommunications company, one of our most important ethical issues, is respecting and preserving our client’s privacy. As we have seen in different countries, there have been several global telecommunications companies that suffered severe customer backlash after allegations in the press accused them of sharing their private information with third parties. To that end, we have taken great care to inform our customers of our privacy policy. We are also implementing an Information Security Management System in accordance with internationally recognized ISO 27001 standard. This standard is considered leading practice in information technology security, and will assist us in maintaining the security of our customer’s information and privacy. Syriatel Sustainability Report 2013 23 Building Sustainable Relationships with Our Customers 24 Syriatel Sustainability Report 2013 Syriatel Sustainability Report 2013 25 High-quality care and customer service are of paramount importance to Syriatel Through our Quality Policy we express our strong commitment to provide telecommunications products and services to the Syrian community utilizing state of the art technologies. We have further made quality a strategic objective for the company recognizing its importance for building long-lasting customer’s trust and loyalty. We build quality from within, by training our customer representatives year-round and implementing best practice global standards. We have set high internal standards by implementing the internationally recognized ISO 9001 Quality Management System and ISO 10002 Complaints Management System to respond to our customers’ needs appropriately and on time. We have developed six quality related key performance indicators (KPIs) and performance against them is outlined in the below table and graphs. In three continuous years we managed to exceed our target for the quality of calls as well as have managed to reduce the weighted average mistakes of our employees. We have put in place robust customer related targets and are working hard to achieve them. In 2013 we’ve managed to exceed our target of speed of solving customers’ complaints. Target 2011 2012 2013 Result Quality of Calls 4 4.109 4.187 4.2 Total weighted defined employee’s mistakes to be less than 0.30% of total transactions 0.3% 0.28% 0.23% 0.14% 100 KPI 90% 80 60 92% 87% 40 67% 20 39% 0 45% 20% 98% To answer 90% from prepaid calls to call center within 90 second Postpaid calls answered To answer 90% from postpaid calls to call center within 60 second Syriatel Sustainability Report 2013 2011 2012 43% 2013 Target 13% Prepaid calls answered 26 54% 35% 80% POS service level for waing me Speed of solving customer's complaint 10 minutes waing me for 90% of POS visitors To solve 90% of customers' complaints according to the agreed time frame Syriatel Sustainability Report 2013 27 Contributing to Local Development 28 Syriatel Sustainability Report 2013 Syriatel Sustainability Report 2013 29 Building community relations based on trust and mutual benefit is essential for protecting our social license to operate. Moreover, at Syriatel we believe we can foster local economic development by creating employment opportunities, identifying the right possibilities for sustained growth and partnerships, and through our numerous philanthropic activities. Our Economic Contribution Economic Value Generated & Distributed (EVG&D) 1) Economic Value Generated Units of reporting FY 2012 FY 2013 SYP 56,641,563,764 58,552,591,549 SYP 56,641,563,764 58,552,591,549 2) Economic Value Distributed SYP 55,124,229,109 53,158,558,551 Operating Costs SYP 13,631,063,063 16,777,687,877 Employee benefits and wages SYP 1,578,647,948 1,578,808,163 Payments to government (STC Revenue Sharing & Interconnect) SYP 29,470,142,679 30,807,829,221 Payments to government (Infrastructure-Taxes-Customs) SYP 4,342,180,261 3,915,209,518 Community Investments (Donations & Sponsorship) SYP 72,195,158 79,023,772 3) Economic Value Retained SYP 1,517,334,655 5,394,032,998 Revenues The Value of Local Partnerships We strive to prioritize local suppliers where possible. Procurement of goods and services from local groups in the areas where we operate is one way we support local economies. We believe there are numerous benefits of working with local groups. It helps increase the overall efficiency mainly because of the proximity of the provided service and the local knowledge available. Engaging local suppliers in our business also helps advance local economic development by providing employment opportunities. We carefully evaluate all potential suppliers using and clearly communicating a standard set of criteria, including technical requirements, costs and compliance with our Quality Policy. In 2013, we have procured 12% of goods and services from local suppliers while 27% of our total CAPEX spending was channeled to local suppliers. 30 Syriatel Sustainability Report 2013 Goods and services procured from our suppliers (SYP Billion) 7.8 6.8 5.8 5.8 6.8 5.1 1.0 1.0 0.7 2011 2012 2013 Value of goods and supplies procured from local suppliers Value of goods and supplies procured from non-local suppliers As part of our strong commitment to transparency and quality, we conduct regular suppliers performance checkups and reviews to ensure compliance with our high standards. We not only monitor our supply chain performance but we also aim to spread our ethics and values across the value chain by developing several collaborative training programs and helping to enhance overall performance. CAPEX spending on suppliers 5.5 (SYP Billion) 5.5 4.5 4.0 1.5 2011 4.0 2.5 2.0 1.5 2012 Value of CAPEX projects supplied by local suppliers 2013 Value of CAPEX projects supplied by non-local suppliers Our Role in Education and Cultural Community Development We support and provide learning and training opportunities across all ages of the Syrian community. In 2013, we have actively participated in a variety of initiatives to support the Syrian youth and to bridge the gap between academic achievements and market expectations. We have also been involved in a number of philanthropic and national projects. in Sharm El-Sheikh, Egypt with the participation of 109 teams representing 60 universities from 12 Arab countries. Syriatel Role in Supporting the Syrian Youth The Collegiate Programming Contest In a contest which is considered one of the biggest and most important programming contests, the Syrian team ‘Titans’ that represents Tishreen University won the fourth position at the Arab Collegiate Programming Contest. Consequently, it earned for the second time in succession the opportunity to advance to the international contest that will be held next summer in Russia. The first and second positions went to two Egyptian teams, while the third position went to a Jordanian team. By this, the number of teams that will participate in the international contest has become six (one Syrian team, three Egyptian teams, one Jordanian team and one Lebanese team). The contest took place in November 2013 Syriatel Sustainability Report 2013 31 “This achievement came as a result of our hard work... mine, the team’s, and the coaches’. I would like to thank everyone who supported and encouraged me: my family, my coaches, and Syriatel family which believed in me and stood by my side whenever I needed it” Mohammed Khalid Mohammed The Syrian participation in the regional contest, which came as a higher level after the Syrian Collegiate Programming Contest that took place at an earlier time in Lattakia, is organized by the Syrian Computer Society (SCS) and sponsored by Syriatel. Syriatel Participates in Job and Employment Fairs In 2013, Syriatel participated in two job and employment fairs. The first of them was “Fursaty” which took place in Lattakia and was organized by the Department of Ecumenical Relations and Development in the Greek Orthodox Patriarchate of Antioch and All The East. Many public and private companies, banks and associations participated in the event which lasted for two days in August. During the event, many visitors visited Syriatel’s stand and met the friendly representatives who welcomed them, answered their questions and received their CVs. The second fair was ‘ShababLINK’ which was sponsored by the Syria Trust for Development and organized by SANAD Team for Development. It is noteworthy that Syriatel joined the students from the first days of the national contest in Lattakia and awarded the winners valuable prizes and a threemonth training program to develop their academic knowledge. Syriatel also contacted the teams on a daily basis during the regional contest events and covered all the expenses of the participating Syrian teams in collaboration with the SCS which granted Syriatel a shield award in appreciation of its role at the contest. Mohammed Khalid Mohammed Wins the Gold Medal at the IPC Athletics World Championship Making all Syrians proud of their nation, Mohammed Khalid Mohammed, the young Syrian and our colleague, raised the Syrian flag so high when he broke the world record and won the gold medal at the IPC Athletics World Championship which was held in Lyon, France. 32 Syriatel Sustainability Report 2013 ShababLINK job fair was held in December 2013 in Damascus Opera House. It is noteworthy that Syriatel participated in these fairs to play an effective role in bridging the gap between academic and practical life by providing the qualified students with job opportunities. Syriatel Training Programs for Students, (Education) As part of the social responsibility and sustainable development project which Syriatel has been implementing for years, in 2013 Syriatel dedicated a variety of training and development programs to university students. A specialized team from Syriatel conducted workshops for Yarmouk Private University students to transfer their experience to the students, refine their skills and prepare them for practical life. For nine days, the team provided educational lectures about customer service, sales, marketing, human resources and quality management. In addition, a team from the technical department provided specialized lectures to a group of students from Damascus University and The Higher Institute for Applied Science and Technology (HIAST). visit the Higher Institute of Business Administration (HIBA) to give its students educational lectures on two main topics. The first of them was about institutional culture, professional work standards and principles of successful business planning starting from preparing professional CVs and ending with conducting successful interviews. The second topic involved quality management concepts, effective marketing principles and information about the Syriatel’s work environment, in addition to effective communication and presentation skills. Syriatel, represented by a professional team, also visited the Faculty of Mechanical and Electrical Engineering in Damascus in November 2013 to Having given educational lectures to Yarmouk Private University students, our specialized team went on to University Work shop From To Number of Attendees Topics Location Yarmouk Business 01/09/2013 11/09/2013 20 Marketing, Sales, Human Resource, Customer Service, strategic planning, Quality, CSR Finance and soft skills Yarmouk University HIAST, Damascus Technical 16/09/2013 17/09/2013 6 Technical Syriatel training room HIBA Business 13/11/2013 14/11/2013 75 MK, HR, Quality, CSR, and Career Planning & interviewing skills HIBA Institute Faculty of Mechanical and Electrical Engineering in Damascus Soft Skills 11/12/2013 presentation 11/12/2013 88 HAMAK Soft Skills (Career Planning & interview university skills) Syriatel Sustainability Report 2013 33 give an educational lecture for fourth and fifth year students. The main topics of the lecture were: planning a career path, writing a professional CV, and acquiring interviewing skills. The Philanthropic and Humanitarian Activities of Syriatel Syriatel Philanthropic Activities in the Holy Month of Ramadan In the holy month of Ramadan, a group of Syriatel’s employees volunteered to visit charitable institutions, such as SOS Children’s Villages and Al-Mabarra Al-Nisaiyah where they distributed Iftar meals, gifts and toys to the children hoping that we could draw a smile on their innocent faces and replace the pain in their hearts with hope. The volunteers also visited the people with special needs at Al-Safina and Dar Al-Salam institutions and the elderly inhabitants of Dar Al-Saadeh and shared the Iftar meals with them. Moreover, a team from Syriatel paid a visit to children of Fatima Catholic Church, where they presented an overview of Syriatel and its services in an atmosphere full of mirth. Syriatel Humanitarian Activities on the International Day of Persons with Disabilities On the International Day of Persons with Disabilities, a new day and a new hope started in AAMAL, the Syrian Organization for the Disabled. Syriatel supported AAMAL since the very beginning of this event. On that day, the kids were so excited and happy with the maze that Syriatel had given to AAMAL. Their laughter spread all over the organization. 34 Syriatel Sustainability Report 2013 “I’m pleased with Syriatel’s presence and support today and hope that Syriatel’s support will encourage the society and other companies to donate to the humanitarian organizations and charities” Mrs. Claudia Touma, the CEO of AAMAL organization Syriatel’s Role in Supporting National Initiatives Syriatel Pays Homage to Syria and the Syrian Army by Sponsoring a National Song The General Organization of Radio and TV – Syria (RTV) and the Arab Advertising Organization (AAO) released a national song sponsored by Syriatel, Syrian Telecom, and the General Sports Union. The song, dedicated to our beloved Syria and its brave army, was performed by a group of Syrian singers with the special participation of Abd al-Rahman Al Rashy, the well-known Syrian actor. The key massage of the song was: “We -the Syriansshould work hand in hand with our brave soldiers to rebuild our country, shape a beautiful future, and help Syria to retake its influential place in the world.” Syriatel Participates in Honoring the Excellent Students at the Martyrs’ Daughters School In November 2013, an honoring ceremony for the excellent students took place at the Martyrs’ Daughters School in Damascus. the daughters of the martyrs in particular. Syriatel awarded them valuable prizes in appreciation of their efforts during their school year. Ministry of Justice Signs a Contract with Syriatel to Adopt Electronic Notification The Ministry of Justice signed a contract with Syriatel to adopt the SMS service as a channel to deliver its official notifications. This step is the result of a joint effort to spread the culture of law. According to the Minister of Justice, Dr. Najm al-Ahmad, signing the contract with Syriatel has no profit to the company; on the contrary, it aims to serve the citizens of the country by changing the traditional methods of notifications. The Chief Executive Officer of Syriatel assured that the reason behind signing the contract is to serve the Syrians in the first place and reduce the expenses, and she pointed out that Syriatel would always provide the needed technology to facilitate the judicial work and the life of the Syrian citizens, especially under the current circumstances. Syriatel’s Head of Corporate Communication Section stated that Syriatel had had previous collaborations with all Syrian ministries and governmental entities, and it was always ready to support them through its available resources. Neighborhoods and the Environment Syriatel has participated in numerous initiatives to help reduce its environmental impact, provide more green spaces for the community, and to encourage volunteering and sense of social responsibility. Keeping our neighborhoods clean and healthy has many benefits both physical and emotional. Through our help and support, we aim to develop sustainable communities and create environment which future generations would be able to enjoy. The ceremony emphasized the importance of sponsoring the Syrian students in general and Syriatel Sustainability Report 2013 35 Enabling a Low Carbon Society, Minimizing Our Footprint 36 Syriatel Sustainability Report 2013 Syriatel Sustainability Report 2013 37 Over the past few decades, the globalization of the world economy has generated unprecedented economic growth. This economic growth was fueled primarily by advancements in transport, and of course, communication. As economies began to grow and millions of people were lifted from poverty into the middle class, we began to see some unintended consequences to this economic growth. in remote areas, renewable energy such as solar and wind offer a viable alternative. Renewable Energy is also referred to as Clean Energy, because it does not emit any CO2 or any GHG gases. • Population increase: in 1970, the population of the planet was 3.5 billion, today that figure is over 7 billion. • Resource scarcity: the increasing number of people is resulting in extreme pressures on our planet’s finite resources such as water, oil, metals, and other minerals. As supplies of these commodities are somewhat fixed, and demand is continuously rising, we are witnessing a lot of fluctuation in the global prices of these commodities, which is contributing to de-stabilizing our economies. • Climate Change: there is mounting scientific evidence that the primary cause of climate change is human activity. Our fossil fuel based economy is emitting several harmful gases into the atmosphere, including CO2, and these gases are causing what scientists refer to as the “Green House Effect”. The Green House Effect is basically the trapping of the sun’s radiation in earth’s atmosphere causing the warming of our planet. Since 2012, we have begun implementing renewable energy, solar, wind or sometimes a hybrid of both in our Base Transceiver Stations “BTS”. The results were overwhelmingly positive as we were able to achieve average 60% less energy purchased from the grid in those stations. In addition to energy savings, we observed the following benefits: Our world is changing rapidly, and as we develop a better understanding of the global mega trends affecting us all, it becomes clear that the solution lies in collective action. That is why we at Syriatel take our commitment to the environment very seriously. Although telecommunications industry in general is not considered one of the high polluting industries, we feel we have a duty to monitor and constantly try to improve our environmental performance. Clean Energy At Syriatel we take our responsibility to the environment seriously, and constantly striving to reduce the environmental impact of our operations. As most of our Base Transceiver Stations “BTS” are 38 Syriatel Sustainability Report 2013 • Less power consumption; • Cost efficient (especially in remote areas away from the electricity grid); • Compatible for 2G and 3G stations. Over the next year we look to continue the expansion of our clean energy roll out. Currently, we have 174 Base Transceiver Stations “BTS” utilizing clean energy sources. Our goal is to reach 20% of our network base transceiver stations “BTS” in 2014. We hope our proactive efforts in this field will serve as an example for other companies in Syria to follow. Our environment belongs to everyone, and we feel everyone has a role to play in helping protect it. Total Energy Consumption in (TJ) 309 Fue Gaso l (TJ) — line -51% (T Elec tricit J) — -44 % y (TJ Ove rall — ) — -1% -25% 232.1 163 The 25% overall reduction in energy consumption during 2013 is due largely to a 50% reduction in Fuel-gas consumption. The reduction in fuel gas is attributed to some rural areas in the North/East being inaccessible. However, as we continue to expand our clean energy implementation plan, we aim to continue achieving real energy savings in 2014. Total Water Consumption in m3 159 4.7 2.6 141.5 70.5 2012 Fuel (TJ) Gasoline (TJ) 2013 Electricity (TJ) 22,602 2012 20,395 2013 Syriatel Sustainability Report 2013 39 Measuring our Carbon Footprint Calculating our Carbon footprint provides an overview of our Green House Gas inventory, converted into CO2 — equivalents and it is based on reported data from our internal and external systems. This calculation provides inputs on the amount of CO2 in our operations as well as it identifies the emissions sources. We then use this data to develop innovative solutions to reduce our carbon footprint. We calculate the Carbon intensity per employee and per value creation to determine relative Carbon intensity ratios. This voluntary disclosure is in accordance with our stakeholder’s expectations of increased transparency, and protecting the environment. Our Green House Gas inventory is based on the international standard for accounting and reporting Green House Gases, Green House Gas Protocol Initiative (GHG protocol), developed by World Resources Institute (WRI) and World Business Council for Sustainable Development (WBCSD). The report considers the following green house gases, all converted into CO2 equivalents: CO2 , CH4 (methane), N2 O, SF6 , HFCs, NF3 and PFCs. Green House Gas emissions • Scope -1 Direct emissions (mandatory reporting): Includes all direct emissions from Syriatel Groupowned or controlled sources, such as company vehicles, heat generation and back-up diesel generators. • Scope -2 Indirect emissions (mandatory reporting): In the case of Syriatel, this means purchased electricity. • Scope -3 Indirect emissions (voluntary reporting): Includes emissions from sources not directly controlled by SyriaTel, such as; Employee business air and ground travel, employee commutes, contracted solid waste disposal e.g., solid waste that is sent to landfills not owned or operated by the company and solid waste (paper, scrap metals, etc.) Inventory Results Syriatel GHG emissions in FY 2013 totaled 31,945 Tones CO2eq. Of this amount, 80.94% (25,856 Tones CO2eq.) was associated with Scope 2 – emissions from electricity purchased from the grid electricity system. Total Scope 1 emissions accounted for 16.89% of the total emissions (5,396 Tones CO2eq.) , where 4,440 Tones CO2eq. resulted from GHG emissions from fuel combustion in DG sets for back-up power in network sites. Tonnes CO2 eq. 25,856 5,201 194 Fuel Consumpon vehicles in self owned 40 Syriatel Sustainability Report 2013 2 1 Fuel Consumpon in DG sets for back-up power Fuel Consumpon in Heaters Electricity purchased from the grid electricity system Business Travel 691 Daily employee commutaon Overall, air emissions are not considered material to the operations of a telecommunications company. However, in an effort to increase transparency in our operations, we are voluntarily tracking the harmful gases resulting from our operations such as NOx and SOx emissions. These are harmful gases that affect the air quality of our communities and environment. Although we are in compliance with local regulations regarding air quality, we strive to improve our performance further: SOx and NOx emissions 9868 4329 257 113 2012 2013 SOx (kg) NOx (kg) Recycling Recycling is nothing new at Syriatel, we launched our recycling campaign two years ago and placed collection bins in all of our offices. However in waste management, there is a hierarchy of activities to adopt before “recycling”. As the mantra goes: Reduce, Reuse, Recycle. Reuse uce ed yc Rec le In our bid to reduce consumption, we redesigned our bill and shortened it from 2 pages to 1 page. This seemingly small initiative results in a 15 ton reduction of paper consumption in Syriatel. Experts estimate that the saving of 1 Ton of paper is equivalent to saving of: • 17 trees • Approximately 25,000 liters of water • Approximately 4,000 Kwh of electricity We will continue in our efforts to reduce paper consumption through introduction of SMS billing (paperless) in 2014. Syriatel Sustainability Report 2013 41 R Investing in Our People 42 Syriatel Sustainability Report 2013 Syriatel Sustainability Report 2013 43 Since Syriatel establishment, we have recognized that the ongoing success of our business depends on our ability to recruit and retain a diverse, talented and committed workforce. We try to create a stimulating and engaging working environment, where all our people take shared responsibility for the delivery of our goals and objectives, and embrace our common values. We strive to provide the best training and career development, equal employment opportunities and a professional workplace. Employment, Diversity and Inclusion In 2013, syriatel total workforce number reached 1647 employees, consisting of full-time employees, temporary employees and trainees. We saw the highest turnover in the coordinators and representatives category in which 55% of the employees fall under ‘less than 30 years’ age group. While this turnover is understandable and predictable, our goal is to recruit and retain the most talented and ambitious people to promote and sustain the long-term growth of Syriatel. To follow up on this commitment, 145 students and promoters participated in our 2013 traineeship program. 44 Syriatel Sustainability Report 2013 Our employees by management level Employee turnover by numbers and percentage 1841 36 123 8 1647 32 118 207 7 20% 351 173 21% 345 14% 235 13% 234 1467 1312 7% 117 0 7% 110 5 2012 2012 Total employees leaving 2013 CEO & Directors Head of units Head of Secons Temporary contracts Coordinators and Trainees 2013 Male employees leaving Female employees leaving representatives Our ability to develop innovative and modern products and services depends on new and great ideas. Ideas and variety of perspectives come from the diverse people we hire. We appreciate the importance of balance between gender and age in the composition of our workforce and we understand the diversity will allow us to gain a better and more holistic view of our customers’ and local communities’ needs. The last couple of years saw a very dynamic and rapidly changing job market. As a result, we have observed that the largest percentage of employees in the coordinators and representatives category remained in the ‘less than 30 years’ age group although there has been slight increase in the ’30-50 years’ age group and it now constitutes 44%. Attracting young talent remains high on our agenda and we have participated in numerous events in 2013 to help develop young people’s practical skills and knowledge, and to prepare them for the needs and requirements of a business environment. Age diversity at Syriatel Gender diversity at Syriatel Coordinators and Representaves 66% 34% Head of Secons 80% 20% Head of Units 75% 25% CEO & Directors 86% 14% Males Females Coordinators and Representaves Head of Secons 55% 14% 1% 86% Head of Units CEO & Directors 44% 97% 43% 3% 57% less than 30 years 30 - 50 years more than 50 years Syriatel Sustainability Report 2013 45 Training and Development Health and Safety We developed a robust training program to ensure all our people are prepared to deliver on our promise for high customer service quality. The training system together with our annual performance review process create a rewarding working environment for everyone in the company regardless of age, seniority and previous experience. The reduction of the total training hours in comparison with 2012 is mainly due to development of e-learning training courses to help reach all of our employees and due to having difficulties in reaching some particular training locations in 2013. Hours of Training 44,800 38,225 16,578 12,575 4,794 1,620 2,918 60 1,025 2012 Senior management 2013 Lower management Middle management Trainees 161 Total Training Hours *The total number of training hours provided in 2012 and 2013 also includes data on training provided to contract labor. Good safety practice at work remains of high importance to Syriatel. We have a dedicated health and safety committee comprising mainly nonmanagement members (151 Non-management members and 1 Management member) as we acknowledge these are the people with the dayto-day knowledge and experience. The committee is engaged in a variety of activities that includes continuous awareness sessions across Syriatel about health and safety issues, as well as monitoring of the company-wide compliance with our safety standards. Beyond the health and safety initiatives at the workplace, we also provide our people with a comprehensive benefits package to cover their health and wellbeing, and those of their families. The package includes social, medical and life insurances, as well as mobile limit and handset, and family medical insurance. Our part-time employees are granted the same benefits with the exception of the family medical insurance. Employee Satisfaction Respect, team spirit and passion are among our corporate values and we strive to integrate them in everything we do and in between ourselves. Creating a tolerant and respectful workplace is an important factor for ensuring employee wellbeing and satisfaction. We have developed a clear anti-discrimination policy and have an Employee Grievance Mechanism in place to help address potential concerns and issues. We also provide various opportunities throughout the company to encourage collaboration, engagement and team-building. 46 Syriatel Sustainability Report 2013 Syriatel Sustainability Report 2013 47