Proximus Sustainability Strategy

Our societal impact

@Proximus

May 2019

A fast changing society

A changing society

Climate change

mobility and quality of living are becoming major preoccupations, with smart cities projects, homeworking solutions, smart living and smart health solutions.

Digital technologies can help develop smart ways to manage waste, energy, mobility and buildings.

Customers expect companies to respect the planet

Innovative technologies

Digital human capital

AI, IoT, VR, Blockchain both factors of disruption as drivers of economic growth.

Companies need to make the digital transition. Security and privacy are important concerns.

Accelerated digitization and emerging technologies are transforming the labor market. Without the necessary digital skills, unemployment and social tensions will increase.

Digital customers

Digital innovations not only delight customers, they also bring new ways to tackle societal, economic and environmental challenges.

Proximus Sustainability Strategy 2019-2021

Connectivity is seen as a basic right, digital inclusion of all citizens is a societal challenge.

Also, customers expect a digital, personalized experience in every interaction.

An ambition, inspired by our sense of purpose

Creating an inclusive, safe, sustainable & prosperous digital Belgium

Making a societal impact Contributing to the UN sustainable development goals

Proximus Sustainability Strategy 2019-2021

A sustainability strategy centered around 4 strategic areas

Enabling a better digital life

Caring for our stakeholders

Contributing to society

Respecting our planet

Proximus Sustainability Strategy 2019-2021

Our company sense of purpose: We open up a world of digital opportunities so people live better and work smarter

Enabling a better digital life

Digital infrastructure

Our societal impact ambition:

Creating an inclusive, safe, sustainable and prosperous digital Belgium

Caring for our stakeholders

Customers first

Digital innovation

Caring for employees

CO2 neutral Digital trust

Doing business right Circular economy

Sustainable supply chain

Contributing to society Digital for all

Respecting our planet

CO2 neutral

Belgian culture

Circular economy

Societal engagement

Sustainable supply

Enabling a better digital life Digital infrastructure Digital innovation Digital trust

Enabling a better digital life

Digital infrastructure We are committed to investing in future-proof digital infrastructure enabling Belgium’s digital society and allowing customers to live better and work smarter.

• 3 € billion Fiber investment • 9 cities, 48% of companies • +7 cities, footprint x2 in 2019 • Finalising deployment in industrial zonings in 2019 Proximus Sustainability Strategy 2019-2021

• 99.9% outdoor and 99.5% indoor coverage on 4G • Extending 4,5G • Preparing 5G

Improving fixed and mobile connectivity in White Zones

Enabling a better digital life

Digital innovation We stimulate co-creation with our customers, engage in open innovation with academic and start-up/scaleup communities and strive benefit for a digital society.

Academic partnerships on IoT, AI, Cybersecurity & networks

Support start-up & scale-up communities

Innovations addressing societal challenges .

Proximus Sustainability Strategy 2019-2021

Enabling a better digital life

Digital trust We pay particular attention to developing a safer digital society. We provide cybersecurity solutions and services to our residential, enterprise and public customers, are a proud partner of the Cybersecurity Coalition and build trust in digital through data protection, privacy and awareness initiatives.

Cybersecurity

Cybersecurity education

.

93% Founding partner of the cybersecurity coalition

â‚Ź 10M 2000M

Ensuring data privacy

Investment per year in cybersecurity CSIRT team monitors this number of events every day alerting customers in case of incidents.

Proximus Sustainability Strategy 2019-2021

> 10,000 children reached every year attracting female talent and promote reskilling initiatives especially to women cybersecurity corporate program and awareness through fishing exercises or capture the flag games.

of Proximus employees reached by GDPR trainings in 2018.

We communicate in a transparent way on personal data processing through an easy to understand privacy policy and consent collection.

Easy to find and understand privacy setting on MyProximus (app & web) and TV (app & web).

Caring for our stakeholders Customers first Caring for employees Doing business right

Caring for our stakeholders

We put customers first Through our products and services we want to stay relevant for our customers, meeting their needs and living up to their expectations.

Listening to our customers

Our Epic offer was cocreated with millennials

We collect customer feedback.to make structural improvements

Proximus Sustainability Strategy 2019-2021

A digital customer service

Titus

New digital solutions: chatbots, our customer forum, a new MyProximus app.

Proactive servicing solutions free smartphone replacement, smartphone insurance and wifi home optimizer app.

Responsible marketing Parental control on TV and smartphones Protect customers from bill chocks with specific offers, proactive alerts or oneshot data bundle offers.

We dialogue on health matters with our stakeholders and provide information to customers on potential radiation risks and provide solutions like bbox set-up turn offs.

Caring for our stakeholders

Caring for our employees We need our employees to make the digital future happen. We offer them the chance to bring about positive change, to make a difference and to contribute to our results. We want them to be our best ambassadors and Committed to digital by making Proximus Supporting ourplace employees Safe & healthy Diversity & Inclusion show our commitment a great to work.

upskilling and reskilling Committed to digital upskilling and reskilling

725

Internal job moves in 2018

20.6hrs

through the transformation Supporting employees in the transformation

2 days

per week homeworking

Resilience Program

training per employee in 2018

X2

training effort over the next 3 years (from 3 to 6 days per employee/year) Proximus Sustainability Strategy 2019-2021

Stimulating diversity and inclusion

58

nationalities

50%

of new hires or promotions in leadership team were woman

Digital Workplace

workplace A safe and healthy work environment

Caring for our stakeholders

Doing business right Compliance and business ethics are our license to operate.

We expect all our employees and affiliates to share and live by our values and standards.

Proximus Sustainability Strategy 2019-2021

Code of conduct

Business ethics

Every year all employees & affiliates have to participate in mandatory training.

We commit to regular employee communication around policies on a.o. anti-corruption, antibribery, conflict of interest.

Transparency

Suppliers

In 2019 we will increase transparency in our non-financial reporting and participating in surveys & rankings consulted by investors/analysts.

We request our suppliers to respect our ethical, social and environmental standards & are committed on our turn to treat them fair and with respect.

Contributing to society

Digital for all Fans of Belgian culture Social engagement

Contributing to society

Digital for all We continuously work on making our products, services, shops and applications accessible for disabled or visually impaired people.

We evaluate the accessibility of new smartphones.

Our websites will be accessible for visually impaired people by 2020 and our apps by 2021.

Our TV interface will support audio description and extended subtitling by 2024.

We offer a social tariff to the less privileged.

Educating Belgians for the digital future

Proximus Sustainability Strategy 2019-2021

20

Contributing to society

Fans of Belgium’s culture

Proximus Sustainability Strategy 2019-2021

Contributing to society

Social engagement

Supporting the Belgian Paralympic Committee

As a company strongly rooted in Belgium, we want to give back to society in a concrete and direct way.

We do this by supporting local initiatives around our offices and other national projects.

Proximus Sustainability Strategy 2019-2021

Respecting our planet Proud to be CO2 neutral Circular economy Sustainable supply chain

Respecting our planet

Proud to be CO2-neutral We are one of the first and few operators in the world who are 100% carbon neutral for own operations and business travel.

99%

-30%

-43%

of our electricity comes from renewable energy sources.

energy consumption over the past 10 years.

energy consumption of our decoders over the past 5 years.

And we continue to raise our ambition We are a cdp leadership award winner in 2018 for the 6th year in a row and won the CDP supplier engagement award in 2019.

Proximus Sustainability Strategy 2019-2021

• to realise our CO2 emission reduction target of 30% between 2015 and 2025 and keep results aligned with Science Based Targets • to further reduce our energy consumption in network and buildings • to reach the RE100 target of 100% electricity from renewable sources in 2021

Respecting our planet

Part of the circular economy At Proximus we are actively contributing to this circular economy, both in-house and together with our customers. We will continue to do whatever it takes to close the circle.

>2000 tons

87%

of copper cable recycled from our network over the past 2 years.

of our waste is recycled, reused or composted.

>400K

>18,000

modems and TV decoders have been refurbished.

Proximus Sustainability Strategy 2019-2021

We recycled 18,279 mobile phones in 2018 together with Goodplanet, well on track to realize our ambition of 200.000 by 2020.

In 2018 we launched a sustainability program in schools around waste, mobility, food and energy, using our IOT technology.

Looking forward

• We are defining a new 10 year circular strategy • We are preparing an ambitious circular economy project

26

Respecting our planet

Sustainable supply chain

100% of contracts contained a CSR clause in 2018 on social, ethical and environmental standards for our vendors.

Looking forward

Proximus wants to evolve from a company committed to CSR and Sustainability to a company that is truly using CSR and Sustainability as key differentiators in its supplier choices and activities.

We are

CO2 neutral Efficiency

Develop

JAC

circular economy initiatives

sharing program with suppliers

in our supply chain Sustainable

RFP process Sustainability training

Sustainable sub-supplier program

program for key suppliers

Joint Audit Cooperation Proximus Sustainability Strategy 2019-2021

Reverse factoring program

for energy and minerals

We are committed to making a societal impact

Supporting local innovation ecosystems Building trust in digital as founding partner in coalition Easy to find and understand privacy settings on App, TV and websites

Proximus Sustainability Strategy 2019-2021

CO2 neutral

Responsible mktg

Improving fixed and mobile connectivity in white zones

parental control on TV and smartphones

Founding partner of Coding School 19

for own activities CO2 reduction -75% vs 2007

X2 50%

100%

Upskilling effort from 3 to 6 days per employee per year in next 3y

Hires or promotions in leadership team in 2018 are women CSR clause in all contracts

12,500 kids trained on safer internet use >1000 long-term ill kids connected to school

Sponsor of the Paralympic athletes

-18% vs 2015 -43% energy consumption of decoders in past 5 years Since 2013 145K smartphones collected in schools for recycling

Our societal impact

@Proximus More information can be found in the annual report 2018, published on www.Proximus.com