Sustainability at Alcatel-Lucent means responsible business innovation. It was integrated in all of our activities in 2015. As the leading specialist in IP networking, ultra-broadband access and cloud technology, Alcatel-Lucent remained focused on
making global communications more innovative, sustainable and accessible for people, businesses and governments worldwide.
4.2.1 Alcatel-Lucent sustainability priorities
Our sustainability activities in 2015 focused on five core priorities, aligned with the results of our materiality assessment in 2014 (see Section 9.2.2) of the key issues related to sustainability and validated by our Chief Executive Officer and the Leadership Team. Those priorities were:Eco-sustainability
Š Lead in eco-innovation by providing energy efficient, environmentally sustainable networks and technologies that meet growing bandwidth demands
Ethical business
Š Reinforce ethical business in every action by every employee, contractor and subcontractor, with zero tolerance for compliance violations
Supply chain
Š Do business with suppliers and contractors who meet our sustainability requirements and work to improve performance
Our people
Š Create a diverse and highly skilled global workforce that is able to meet customer demands for reliable, quality service
Digital inclusion | The Alcatel-Lucent Foundation Š Help youth innovate in a digital world
4.2.2 Sustainability materiality assessment
Alcatel-Lucent carried out a materiality assessment in 2014 in line with its strategy for refocusing the business, The Shift Plan. The aim of the materiality assessment was to identify top issues and monitor and fine-tune our sustainability strategy, priorities and key performance indicators according to the expectations of material stakeholders internally and externally.The assessment looked at more than 35 business issues affecting our short-, medium- and long-term corporate strategy — everything from products, services, customers, operations, employees, risk management and energy efficiency to ethics and governance, information security, human rights, digital
inclusion, and diversity and philanthropy. Each issue was carefully defined and weighted both for impact on the Group’s commercial success and stakeholder expectations. More than 30 key executives within Alcatel-Lucent were interviewed in depth over a four-month period along with all members of its Sustainability Advisory Panel.
The materiality assessment identified key issues related to eco- sustainability (with a focus on developing energy-efficient networks), ethical business practices (including the increasing need for data privacy and protection), our supply chain, employee wellbeing and diversity, and digital inclusion.
Product innovation and environment
2. Product safety
7. Electromagnetic environment 10. Product stewardship 17. Product energy efficiency
21. Management of hazardous substance 22. Greenhouse gas emissions (operations) 25. Non-GHG emissions (operations) 26. Waste management
32. Biodiversity and environmental protection
Ethics and compliance
1. Intellectual property (infringement, avoidance)
14. Information security
15. Anti-corruption / code of conduct 16. Anti-trust and fair business practices 19. Public policy on fair business practices 23. Data privacy
27. Responsible marketing
31. Freedom of expression and privacy 34. Taxation
Our people
5. Professional development and talent retention
6. Employee satisfaction and engagement 9. Global diversity
11. Non-discrimination and equality 13. Health and safety / well-being at work 33. Freedom of association / collective
bargaining
Digital inclusion
4. Local sustainability Impacts 8. Inclusion and access 20. R&D partnerships
30. Philanthropy and volunteering 35. Shared value community investment
Supply chain 12. Supplier diversity
18. Sustainable practices in the supply chain 28. Material content traceability
Sustainability management
3. Customer Satisfaction
24. Corporate social responsibility vision and strategy
29. Transparency, accountability and reporting
In 2015, we continued to apply the findings of our materiality assessment. With the validation of our CEO and Management Team, we recalibrated our sustainability strategy and approach to responsible business innovation. For each material priority, we established a dedicated action plan concentrating on
addressing industry issues such as energy efficiency, ethics, human rights and freedom of expression, data privacy, supply chain transparency, employee well-being, gender diversity and social innovation via the Alcatel-Lucent Foundation.
Alcatel-Lucent’s sustainability strategy and reporting framework conformed to the following key regulatory, investor and customer requirements and globally recognized sustainability frameworks in 2015:
Š Article 225 of French Grenelle II law (July 10, 2010): Grenelle II requires companies’ annual reports to include information on the environmental, social and societal impacts of their business activities and on their commitments to sustainable development, with independent, third-party verification of the information published.
Š Global Reporting Initiative (GRI): Our sustainability report is prepared according to the GRI sustainability reporting guidelines. The 2010 report was prepared according to the GRI Guidelines, at Application Level B+. The 2011, 2012 and 2013 reports were prepared according to the GRI Guidelines, at Application Level A+. All these reports were submitted for the GRI Application Level Service. The 2014 report was prepared following GRI G4 Core Guidelines. The 2015 report will only focus on the Grenelle II legal requirements and the Principles of the United Nations Global Compact.
Š United Nations Global Compact (UNGC): In 2015, Alcatel- Lucent based its sustainability activities and reporting on the 10 Principles of the UNGC.
Š EcoVadis: Our sustainability strategy follows the EcoVadis framework, which is a mandatory annual evaluation of customer and supplier corporate social responsibility. It is based on the GRI, UNGC and ISO 26000 standards. In
2013, we were granted Gold Recognition with a score of 71/100, placing us in the top two percent of suppliers assessed in all industrial categories. In early 2015, we were granted Gold Recognition for the third year in a row with a score of 81/100 placing us in the top 1% of suppliers assessed in all industrial categories.
Š Dow Jones Sustainability Indices (DJSI): Our sustainability strategy is closely based on the RobecoSAM DJSI framework. In 2015, for the fourth year in a row, we were named Industry Group Leader for the Communication Equipment Industry with a score of 92/100. This follows being named Leader of the Technology Supersector’s CMT Communications Technology Sector in 2011, and recognized Group Leader for the Communication Equipment Industry in 2012, 2013, 2014 with scores of 86/100, 87/100 and 91/100, respectively.
Š Carbon Disclosure Project (CDP): Alcatel-Lucent referred to the CDP framework relating to climate change strategy, governance, performance as well as supplier requirements, in preparing its 2015 sustainability report. In 2015, Alcatel- Lucent received a score of 100A for transparency and performance placing us in the A-List of companies. Alcatel- Lucent was also classified in the CDP Supplier Climate A-List. Š International Integrated Reporting Framework (IIRC): In 2014, Alcatel-Lucent performed a gap assessment to incorporate the IIRC framework into its corporate reporting. In 2015 we launched a dedicated analysis on quantifying value for one major product solution set based on energy efficiency requirements. The findings are being finalized at the time of the publication of this report.