AT&T 2011 Sustainability Report

Promoting safety with AT&T Smart Controls

It’s a scary Internet world out there. We provide tools to better manage wireless, Internet and TV experiences and launched AT&T Smart Controls in 2011 — www.att.com/smartcontrols.

Learn more about Promoting Safety (PDF).

Go Paperless!

We all know that paperless billing saves paper. That’s a no brainer. But did you also know that it not only saves other valuable resources, like water, it’s also a more efficient way for our customers to pay their bills? Not to mention it also helps us reduce our costs. So it’s great news that in 2011, 2.8 million additional customers opted to receive only an electronic bill, bringing the total number of customers going paperless to about 17.2 million by the end of 2011. Join the effort at www.att.com/simplify.

Learn more about Paperless Billing (PDF).

Managing directories and White Pages — Where to turn

Not sure how to adjust the number of directories you receive or where to recycle them? Here’s how!

Directories
To decide how many directories you get every year from AT&T you can call 1-866-329-7118 or visit www.att.com/mydirectories. You can also visit www.YellowPagesOptOut.com to stop delivery of directories published by AT&T or other publishers.

Are you trying to recycle outdated phone books? Customers in many communities can call the AT&T Project ReDirectory toll free telephone number, 1-800-953-4400, which is listed on the directory cover.

White Pages

We’ve discontinued distribution of residential White Pages except to customers requesting directories [per content on previous page] in 64 markets so far, because usage statistics indicate consumers use residential White Pages listings less often than our other directories. We understand how important it is to educate our consumers about options — such as viewing listings online at www.RealPagesLive.com or by using the app The Real Yellow Pages compatible with the Apple iPad, which is all a part of the Residential White Pages Consumer Choice Program. Residential White Pages listings and other useful search information are also available at YP.com. If you want a printed copy of your local residential White Pages directory you can request it at no charge from AT&T.

Sourcing

We actively work to reduce the environmental impact of the paper sourcing, production and distribution of directories we produce. Our telephone directory paper is made mainly from residual sawdust, scraps from lumber production processes and, depending on market availability, post consumer recycled paper.

We require our suppliers to practice renewable, sustainable resource management in the sourcing of wood fiber used in making our paper.

Learn more about Directory Efforts (PDF).

Smart utility grids — Improving how we use electricity and water

Our technology now is so advanced, shouldn’t our resource use be too? Electricity and water utility grids are becoming 21st century-smart with the help of AT&T. Broadband and wireless communication technology allows utility meters, utilities and customers to communicate with each other more effectively. At the end of 2011, AT&T provided the communications for 13 million smart meters.

Learn more about Tackling Environmental and Social Challenges with Technology (PDF).

Protecting your privacy

We take customer privacy very seriously. Our privacy commitments are fundamental to the way we do business every day.

For more information on the AT&T privacy policy, visit www.att.com/privacy.

The Ponemon Institute has named AT&T as one of the 20 most trusted companies on privacy for 2011.

Learn more about AT&T’s approach to Privacy (PDF).

Work as an activity, not a place

Americans spend an average of 100 hours per year commuting to work!* That’s more than twelve full work days sitting in a vehicle. Think of the lost potential. Flexible work programs such as telecommuting can have a positive impact on personal productivity, quality of life and work space efficiency.

Learn more about Telecommuting (PDF).

*Source: US Census, 2010.

Learning beyond the classroom — Connecting school and home

So often kids come home from school and plop down in front of the TV. What if this habit could be educationally productive? One way it could is TVTextbook (TVT). TVTextbook delivers high-quality K-12 curriculum through a learning console connected to the television. With our network, the student’s learning day can be extended to the home, with or without internet. The student experience with TVT is game-like, with avatars, personalized music and an intuitive “homepage” for students and parents. Students can click on their digital backpack to complete interactive math and reading assignments. Parents can click into a simple-to-use “Parent zone” to monitor their child’s progress. As the product is released, devices will be loaned to students for at-home studies by school districts. The AT&T 3G data-only dongle uses a USB form factor that allows users to wirelessly access the world-class learning content on the TVT console and communicate student usage data back to teachers and administrators.

See it in action at www.tvtextbook.com.

Learn more about Tackling Environmental and Social Challenges with Technology (PDF).

Confronting the high school dropout crisis

More than one million high school students (25 percent) fail to graduate with their class, including nearly 40 percent of African-American, Hispanic and Native American students. Dropouts from the Class of 2010 alone will cost the nation more than $337 billion in lost wages over the course of their lifetimes.

Through AT&T Aspire — our signature education initiative specifically focused on high school retention and workforce readiness — we are working to reverse this trend. We launched Aspire in 2008 with an initial $100 million commitment to the program. We met this commitment in 2011, and a few months later we announced an additional $250 million for the program.

Our employees continue donating their time to students, helping them learn about careers and understand the education and skills needed to succeed on the job. Since the AT&T/Junior Achievement Worldwide Job Shadow Initiative started in 2008, we held events in nearly 212 cities and met our goal of reaching 100,000 students in March 2012.

Progress is being made towards the goal of a 90 percent graduation rate by 2020. Since 2002, due to collective efforts of the Grad Nation campaign, the graduation rate throughout the country has raised from 72.6 percent to 75.5 percent. In the same period, rates also have improved in 40 of the 50 states.

We will continue efforts into 2012 with the second phase of the Aspire program.

Learn more about AT&T Aspire's progress in 2011 (PDF).

Follow our ongoing commitment to help more students graduate from high school ready for careers and college.

Promoting safety through education

America’s youth consume nearly eleven hours of media each day.* The Internet and media can be a powerful learning tool, but there are also online dangers. We work with several organizations that promote online safety education and awareness, including the Family Online Safety Institute, Common Sense Media, Enough is Enough, iKeepSafe Internet Safety Coalition, ConnectSafely, Common Sense Media and the National Cyber Security Alliance.

Program highlights include:

Enough Is Enough Internet Safety 101 Program provides materials and resources for parents, teachers and community leaders to educate them about how to best protect children on the internet. In 2012, the program was expanded to include information on our no-texting-while-driving campaign, It Can Wait.

iKeepSafe’s Project PRO (Privacy and Online Reputation) teaches teens the value of creating a positive, digital portfolio through the American School Counselors Association (ASCA). Thousands of counselors nationwide have downloaded content and have received special training on PRO materials and messages, now available in Spanish as well as English. http://www.ikeepsafe.org/videos/project-pro-students-english/

Common Sense Media and AT&T joined forces in 2011 in a first-of-its-kind agreement to bring parents safety tools and “family-friendly” content rankings for mobile applications, videos, games and more — to manage mobile content in a way that’s best for families. With new research indicating that more than half of all children have access to smartphones or tablet devices at home, the agreement continued AT&T’s tradition of helping parents stay educated on important safety tips and information.

*Source: Kaiser Family Foundation, 2010

Volunteering in our community

What’s a cause that’s important to you? Each year, our employees and retirees, including the AT&T Pioneers and Employee Resource Groups, get actively involved in their communities with causes that are important to them. In 2011, our employees and retirees donated more than six million hours of time to community outreach activities — worth more than $133 million¹. Employee volunteerism programs provide comprehensive and flexible volunteerism options.

Building an outdoor classroom — The AT&T Pioneers Texas Pride Chapter, in collaboration with the People Empowerment Project, is in the process of building an outdoor classroom for students at CF Carr Elementary and BH Macon Elementary, inner-city Dallas schools. Plans at both schools include the existing vegetable gardens, a butterfly garden and an outdoor classroom.

Learn more about Engaging Employees in Their Communities (PDF).

¹ Note: The financial equivalent is determined by using $21.79 per volunteer hour, which is based on the 2011 industry standard from Independent Sector, a leading nonprofit organization that determines the financial equivalent for a variety of volunteer initiatives.

Revolutionizing health data delivery

Currently individual health data can be inaccessible, locked in doctor's offices, filing cabinets, devices and applications that can't interact. This can make decision making challenging. To address this issue, we have developed the mHealth Platform to help bridge the gap between health and mobility. We are close to being able to pilot these services, which means we believe they’ll be usable in the foreseeable future.

Learn more about Innovation (PDF).

Telehealth

Try to picture doctors in different locations consulting with each other on the best course of treatment for a patient. Healthcare must constantly evolve to meet shifting public needs. The task of improving quality of care, while reducing costs and complying with various regulations, demands innovative, dynamic solutions.

Explore the world of telehealth.

Learn more about Tackling Environmental and Social Challenges with Technology (PDF).

Healthcare transformed

What if your kid breaks his/her leg on family vacation? Don’t worry. His/her health history can be delivered instantly, even to doctors in the middle of nowhere. See how the network is transforming healthcare.

Empowering senior consumers to keep safe

From rotary phones to the Internet in the palm of your hand, today’s seniors have witnessed extraordinary technological change during their lifetimes. We provide educational programs for seniors who did not grow up as a “digital native.” One of the most popular programs is one-on-one coaching sessions for seniors, in which AT&T volunteers help them learn how to use their wireless devices more safely and efficiently. Thousands of seniors have taken advantage of this program, including seniors in Spanish language communities. OASIS, one of the senior organizations AT&T supports, helped develop the model for this program.

Learn more about Promoting Safety (PDF).

Supporting those who serve

To those who give so much in serving our country, we owe a great deal. For almost 100 years, we've been dedicated to supporting active military personnel, their families and veterans through charitable contributions, event and program sponsorships, hiring military veterans and maintaining policies that support reservists when they are called to active duty.

For example, in March 2011, ten companies jointly pledged to hire 100,000 veterans and former active duty military personnel by the end of 2020. We are proud to be one of them. We also saw the first class of participants from the Operation Hand Salute protégé program graduate. The program is designed to help Disabled Veteran Businesses develop the tools and expertise to win large corporate contracts.

Learn about our Military Support programs (PDF).

Finding business success with bold leadership
The experience that veterans gain during their time of service equips them to tackle big challenges when they return home. Gary Herbold has more than 25 years of experience as a business owner and operator. As a disabled veteran, he is also actively involved in outreach to veteran entrepreneurs through the California Alliance of the DVBE, which encourages and supports veterans in their business ventures. In 2010, he took over as CEO of new joint venture KelleyAmerit Fleet Services (KAFS). KAFS had a significant history and record of success behind its two parent companies — Amerit Consulting and Kelley Fleet Services — but when we issued an RFP in 2010 for a single vendor to provide nationwide fleet maintenance, the two came together to establish a joint entity they felt could get the job done.

Though a new company, KAFS’s cost effective bid matched with its high standard of management inspired us to take the leap on this brand new company, and it paid off. Under Mr. Herbold’s visionary leadership, KAFS’s aggressive plan of going from zero to more than 800 employees in just two months worked.

Source: http://www.kelleyamerit.com/leadership

Giving

There’s truth to the old saying: it’s better to give than receive. Giving a gift not only benefits the recipient, but the giver as well. We believe that smart community investing not only benefits our communities, but our company too, creating shared value. AT&T and the AT&T Foundation support programs and projects that create learning opportunities, promote academic and economic achievement and address community needs. In 2011, we contributed more than $115 million through corporate, employee and AT&T Foundation giving programs.

Read more about AT&T Aspire (PDF), our primary philanthropic focus.

Learn more about Philanthropy (PDF).

Tackling texting while driving head on

Think about the last text message you sent. Is that text message worth your life? Texting while driving is a dangerous mix, and we’re committed to educating wireless customers about the risks of texting while driving. As part of our campaign, several brave individuals lent their voices to the documentary posted here.

Download materials at www.att.com/itcanwait

Learn more about Promoting Safety (PDF).

There in a time of need — Disaster relief

When disaster strikes, AT&T and our employees assist victims and affected communities through corporate giving and assistance, volunteerism and network preparedness and response.

In 2011, AT&T and the AT&T Foundation contributed more than $1.1 million to support organizations helping with disaster relief. In addition, our employees and employee groups reached out to help disaster victims, their colleagues and retirees affected in state and federal declared disasters. In the U.S., AT&T Pioneers, a network of AT&T volunteers, and the AT&T Foundation donated $262,100 in disaster relief to assist disaster victims affected by tornadoes, flooding and severe storms in Alabama, Arkansas, Georgia, Illinois, Minnesota, Mississippi, Missouri, North Carolina, Oklahoma and Tennessee. The tornadoes that devastated Joplin, Missouri prompted another outpouring of employee support. AT&T employees donated $200,000 to help fellow employees. Globally, AT&T employees donated more than $160,000 to help those affected by the devastating earthquake and tsunami in Japan.

Learn more about Disaster Relief (PDF).

Fulfilling the potential of a talented generation

One million 16-24 year olds are now unemployed in the United Kingdom. It’s a problem. Working to address it, The Prince’s Trust performs critical work in supporting the development of workplace skills among youth. We have supported The Prince’s Trust for the last six years, contributing nearly $300,000 — enough to support 110 young people starting up their own businesses.

“We are really proud to have AT&T as a supporter of The Prince’s Trust. Together we are making the most enormous difference to the lives of young people across the U.K.,” — Martina Milburn, Chief Executive of the Prince’s Trust.

Learn more about International Giving (PDF).

PEACE THROUGH BUSINESS®

Stronger women make stronger communities. This is why the Institute for Economic Empowerment of Women (IEEW) created the PEACE THROUGH BUSINESS® program in 2007 to equip women business owners in Afghanistan and Rwanda with entrepreneurial skills so that they could develop and advance their businesses and gain financial independence. In 2011, AT&T employees and volunteers provided support for the initiative and guidance for its students, in order to support these women in accomplishing their entrepreneurial goals.

Learn more about International Giving (PDF).

Promoting access to water for the impoverished

Water is critical to life. ONE DROP aims to fight poverty by providing access to water and raising awareness of actions necessary to make safe water accessible to all, in sufficient quantities. We supported a water management program in El Salvador that improves the health and quality of life of low income families.

Learn more about International Giving (PDF).

Communicating during disaster relief

We sometimes take for granted the ability to make a call. But during emergencies, when communications are down, restoring them can be the difference between life and death. Since 1998, Télécoms Sans Frontières (TSF) has been a world leading nonprofit organization specializing in emergency telecommunications and new technologies. AT&T is proud to be a long-term supporter of TSF. In 2011 emergencies, TSF teams were deployed to such places as Libya, El Salvador, Kenya, Thailand, Japan and Turkey. From 2003 through the end of 2011, we have given $654,000 to TSF.

Learn more about International Giving (PDF).

Building the capacity of health professionals

Since 1958, Project HOPE has worked to make healthcare available for people around the globe. Their work includes educating health professionals and community health workers, strengthening health facilities, fighting diseases and providing humanitarian assistance through donated medicines, medical supplies and volunteer medical help. AT&T continued to support their efforts in 2011.

Learn more about International Giving (PDF).

Supporting students and children in India

In India, we assisted with two projects.

• The Parikrma Humanity Foundation’s Circle of Life program supports 36 low-income high school students in India. It seeks to ensure that the students have access to a comprehensive educational program as well as nutrition and healthcare resources.
• Shantidhara's Loni Children's Home mission provides educational opportunities for children who are physically challenged — generally from the effects of polio. AT&T supported it in the development of a computer lab for students with disabilities so that they can obtain skills necessary to join the workforce.

Learn more about International Giving (PDF).

Tackling fuel costs with efficiency

Imagine keeping track of a fleet of vehicles as they move around the city. Whether you have ten vehicles, 50 vehicles or 70,000 (as we do), effective fleet management is critical, especially with gas prices as they are. Fleet management solutions can help managers reduce energy waste, lower fuel consumption, reduce CO₂ emissions with less idle time, more effectively plan routes and streamline the number of vehicles needed in their fleet.

Find out about Fleet Solutions.

Learn more about Tackling Environmental and Social Challenges with Technology (PDF).

Addressing the alternative fuel challenge

Two and a half million gallons of gasoline… that costs a lot of money. Thanks to our compressed natural gas (CNG) vehicles, that’s how much gasoline we expect to avoid buying in 2012 and in each subsequent year they’re in service. At the end of 2011, we had 3,469 CNG vehicles in service. Finding cleaner, more efficient methods of powering our vehicles is important to this country’s economy and security, as well as the environment. With one of the largest commercial fleets in the U.S., we know we need to be part of the solution, even though there are many challenges with making that change. That’s why in 2009, we made a commitment to invest up to $565 million to deploy approximately 15,000 alternative fuel vehicles (AFVs) through 2018.

In a 2009 report, the Center for Automotive Research (CAR) estimated that the planned alternative fuel vehicle commitment would:

• Create or save — on average — approximately 1,000 jobs per year over the first five years of the initiative.
• Save 49 million gallons of gasoline.
• Reduce carbon emissions by 211,000 metric tons over the 10-year deployment period — the equivalent to removing the emissions from more than 38,600 traditional passenger vehicles for a year.

By the end of 2011, we had deployed 5,114 AFVs, including 3,469 CNG vehicles and 1,617 hybrid electric vehicles, as well as three all-electric vehicles (AEVs). We also opened our first private compressed natural gas refueling station in the Los Angeles area that serves over 150 AT&T service and passenger vehicles.

Learn more about our Transportation Initiatives (PDF).

Charging the next generation of vehicles

Electric vehicles (EVs) aren’t just cool. They help us reduce our dependence on foreign oil and improve environmental sustainability. Every major automaker in the world will have an EV on the market by 2013. To support the adoption of EVs, safe, convenient and accessible public charging infrastructure is required.  Coulomb Technologies is a leading EV charging solutions company. Its ChargePoint® Network is the largest network of independently owned charging stations in the world. Powered by the AT&T Network, ChargePoint Network already boasts thousands of charging spots where EV drivers can plug in. It is used by workplaces, cities, parking operators, property managers, hotels and retailers who want to attract large numbers of EV drivers to their charging stations. Features include the ability to find charging stations from online maps and mobile apps, see real-time charging station occupancy status, see pricing and make station reservations and access around-the-clock support, while providing station owners the ability to manage and support their EV stations.

Learn more about Transportation Initiatives (PDF).

Exploring alternatives — Solar

We all know how great the sun feels on a nice spring day. We’re working to harness that power to provide energy at some of our central offices. In 2011, we avoided the CO₂ emissions equivalent of 430 cars annually, and we have commissioned five solar systems.

Learn more about our Alternative Energy efforts (PDF).

Managing one of our most valuable resources

Water — it’s the lifeblood of our planet. In 2010, we established a Water Scorecard to raise the visibility of our use at our top 125 water-consuming facilities, which represent 50 percent of our water use. We have seen success, using a similar model for our energy management. Using the Scorecard as the foundation, in 2011 we:

• Began developing practical tools that our facility managers can use to increase water efficiency related to our use of mechanical cooling.
• Continued to evaluate cooling tower water efficiency technology at several sites.
• Expanded our thinking about the relationship between water and energy to drive efficiency in both.
• Measured our Water Footprint. In 2011, we used 3.4 billion gallons of water.

Learn more about Water Management (PDF).

Exploring alternatives — Fuel cells

How do you reduce CO₂ emissions by approximately 50 percent, compared to the grid? Fuel cells offer clean, reliable and affordable onsite power that can do just that. In April 2011, we contracted with Bloom Energy to install 7,500 kW of Bloom Energy fuel cells at 11 facilities in California. All systems were online by the end of June 2012. They will produce 62 million kWh per year. That’s about the same as the annual CO₂ emissions from the electricity use of 5,331 houses, which is about half the population of Walla Walla, WA, just as a point of reference.

Learn more about our Alternative Energy efforts (PDF).

Rewarding results in energy management

Report card time — some of us loved it, some of us loathed it. No matter where you fell, it held you accountable and probably prompted you to perform better. That’s why we set up a system that scores real estate and network managers — our Energy Champions — based on how well they manage energy use, meet goals and implement innovative projects.

The system rests on our centralized energy data base, which feeds an Energy Scorecard that we have implemented at the top 1,000 energy consuming facilities. Quarterly, the Energy Team — headed by our Energy Director — reviews performance and gives each real estate manager a score. The results are incorporated into the annual performance objectives for real estate managers.

This is important to our effort to save money and reduce emissions, seeing that buildings in the United States are responsible for 39 percent of CO₂ emissions and 40 percent of energy consumption every year.

Results: From 2010–2011, we implemented 8,700 projects that totaled an annualized savings of $86 million.

Some of our greatest hits from 2011 include:

• Motion Sensor Replacement in Central Office space — $3.9M annual savings.
• Premium Efficiency Motor Upgrades — $1.8M annual savings.
• Airflow Remediation in Data Centers — $1.4M annual savings.
• Retro Commissioning — $2.2M annual savings.

Learn more about Managing Energy (PDF).

Greenhouse gas emissions

Electricity powers our world! It's also a large source of greenhouse gas (GHG) emissions. We're committed to measuring and managing these emissions. In 2011, our GHG emissions stayed relatively steady compared to 2010, with a slight increase in our indirect emissions (think electricity) and a slight reduction in direct emissions (think fleet and generators). We are taking concrete steps to reduce our emissions with energy efficiency efforts and the deployment of alternative fuel vehicles. We have also set some goals to address these emissions. Check them out at our Progress Toward Goals.

Learn more about Greenhouse Gas Emissions (PDF).

Committed to diversity

Our global community is not all the same, so why would we want our workforce to be? A diverse and inclusive workforce enables us to develop the most innovative products and solutions to meet our customers' needs.

Our workforce is:

• 39 percent female.
• 39 percent people of color.

Our managers are:

• 39 percent female.
• 31 percent people of color.

Learn more about our commitment to Workforce Diversity (PDF).

Operating with integrity

How a company does business is as important as what they do. We take good corporate governance very seriously. Living up to the highest standards of honesty, integrity and respect is the most important commitment we can make — to each other, our customers, our business partners and to our shareholders.

For information on our Code of Ethics, compliance, political contributions, executive/board compensation and our corporate governance structure, visit our Investor Relations page.

AT&T's Code of Business Conduct (CoBC) (PDF) puts our values into action across the entire globe. In 2011, we accomplished approximately a 99.6 percent completion rate on our CoBC training.

Learn more about Good Corporate Governance (PDF).

Growth through training and development

Learning is how we grow — as people, and as a company. In 2011, we invested more than $280 million in employee learning and development programs. This does not include the money spent for travel and to deliver such training. In addition, we spent nearly $28 million on tuition reimbursement. During the year, 100 percent of employees have performance reviews and receive feedback on results and demonstrated leadership. Career discussions are conducted with employees, focusing on short-term and long-term planning.

Learn more about Good Jobs (PDF).

Let’s get together — AT&T Business Sustainability Advisory Council

Products and services can help organizations save money and minimize their impact on the environment. But how much? To answer this question, we convened the AT&T Business Sustainability Advisory Council, bringing together representatives from government, non-governmental organizations, academia and industry peers. In 2011, the AT&T Business Advisory Council — who meets via Telepresence® — delivered white papers on the business and environmental benefits of cloud services, and rolled-out the AT&T Carbon Emissions Calculator tool, which enables business customers to easily calculate the estimated GHG emissions and cost savings from using solutions that replace or reduce business travel and increase productivity and collaboration.

Accessorizing with plant-based plastics

What’s this year’s hottest outerwear for accessories? Well, let me tell you about PlantPack. In 2011, we introduced a new accessory packaging that is composed of up to 30 percent plant-based materials. The plastic is sourced from ethanol harvested from natural sugarcane. The sugarcane used in this plant plastic is a rapidly renewable agricultural crop and replaces nearly a third of the fossil fuels traditionally used. The adoption of the new plastic was part of the broader overall commitment to minimize our environmental impact. In 2010 and 2011, we eliminated the use of more than 500 tons of paper and plastic in our accessory packaging.

Learn more about our Waste Management efforts (PDF).

Do One Thing — AT&T employees take steps to better themselves, community, company

Do One Thing (DOT) is a voluntary company-wide effort that encourages employees and business units to commit to regular, measurable actions that are good for themselves, their communities and/or the company.

DOT starts with making one simple change. Employees can choose something they care about — the environment, their community, their health, their relationships — and change one behavior.

This new action is a foundation for understanding sustainability and being part of our broader movement toward a better tomorrow.

Watch this short video to meet three employees who are making a difference.

When labels do matter

In 2011, the Samsung Evergreen TM received platinum certification from UL Environment, a business unit of UL (Underwriters Laboratories). Evergreen is the first Samsung product from AT&T to achieve the highest level of environmental performance recognized by new sustainable requirements established by UL Environment.

AT&T has been an active participant with UL Environment and other sustainability stakeholders in working towards the development of requirements to identify leadership mobile phones from an environmental and human health perspective.  The UL Environment requirements set minimum standards for “environmentally preferable” mobile devices by measuring environmentally sensitive materials, energy management, manufacturing and operations, impact to health and environment, product performance, packaging and product stewardship.

Launched in November 2010, the Samsung Evergreen is a quick-messaging device whose casing is made of 70 percent post-consumer waste recycled plastic. The phone's packaging uses 80 percent post-consumer recycled paper and soy ink for printing, and a CD replaces the traditional paper guide. The phone meets EU RoHS standards and is free of PVC, BFR and beryllium.

We need you… to recycle your cell phone!

Only 18 percent of TVs, cell phones and computer products that can be recycled are collected for recycling, according to the EPA. For just cell phones, the number is lower — around 10 percent.

We are committed to helping address this issue.

In 2011, we collected approximately 3 million cell phones for reuse and recycling and 1.7 million pounds of batteries and accessories. We want to do better, and we need your help!

There are several ways to recycle:

• Drop-off bins in all of our retail locations.
• Device trade-in program.
• Free, prepaid mailing envelopes in stores and online.
• Postage-paid mailing labels available at www.att.com/recycle.

Learn more about Cell Phone Recycling (PDF).

Data center efficiency

Data centers are complex. They host Information and Communications Technology (ICT) systems and equipment. The good thing is that people and organizations can use this technology to operate more efficiently. The drawback is that the more they demand this technology, the more energy we use. That’s why we’re working to operate more efficiently in our data centers on two fronts: the IT equipment itself and the facilities that house it.

ICT equipment (servers, storage, network, etc.) — With the equipment itself, we’re focused on virtualization and compression efforts to move physical servers to virtual machines. In 2011, this yielded annualized energy savings of 21.9 million kWh in 2011, equal to the electricity use of 1,883 homes annually.

Data center facilities — With the facilities, we’re focused on energy efficiency projects, such as retrofitting computer rooms’ air conditioner fan motors and air conditioning chillers with Variable Frequency Drives that automatically adjust the rate of airflow based on system demand. These kinds of projects led to 18 million kWh annually in savings, equal to the electricity use of 1,548 homes annually.

Learn more about Data Center Energy Use (PDF).

Keeping you connected — Investing for growth

Did you know that data traffic on our network grew 20,000 percent between 2007 and 2011? That’s right, 20,000 percent in just five years! Mobile technology revolutionizes the way we live, work, study and play. It’s hugely popular; nearly half of Americans use a smartphone, according to a new study from Pew Internet & American Life Project.* While an exciting change, it’s also created unique challenges for mobile Internet providers.

The raw material needed to support all that traffic is a scarce resource — wireless spectrum. FCC policies have to evolve and make spectrum available or they will stifle new consumers' benefits. As the FCC itself has acknowledged, “If we don’t act, the costs of not addressing the spectrum crunch — dropped connections, congested airwaves, lousy service and rising prices for data — will get higher every day.” AT&T and the industry as a whole need new spectrum, and the government must have new auctions and allow the free market system to work so additional spectrum can be obtained.

Within current spectrum constraints, AT&T continues to invest in and enhance our network to drive service improvements.

In 2011, we invested more than $20 billion in our wireline and wireless networks. We also:

• Completed more than 150,000 network improvements.
• Built 1,400 new cell sites.
• Added 700,000 square miles of mobile broadband coverage.
• Began 4G LTE rollout.

In 2012, we plan to invest another $20 billion in our networks with a focus on wireless, deploying more 4G LTE, rolling out Distributed Antenna Systems in key venues across the United States and adding even more AT&T Wi-Fi hotspots.

Learn more about Network Reliability (PDF).

*Source: Huffington Post, 2012.

Efficiency in the network — Central office switches

Switches provide a dial tone and enable users to communicate — think old time operators at the switchboard. Central offices house these switches. They are a critical component of our infrastructure. We are in the process of replacing and optimizing hundreds of switches to improve their efficiency and save electricity and HVAC. This is part of our larger effort to modernize and consolidate the network. These continued actions resulted in an annual electricity reduction of 35 million kWh, equivalent to the CO₂ emissions from the electricity use of 3,009 homes for a year.

In addition to more focused projects, we are actively continuing to retire, rearrange, remove, reuse, redeploy, reconfigure and recycle old network equipment, such as transport or power equipment, separate from the switches.

Learn more about AT&T’s effort to Manage Energy (PDF).

Efficiency in the network — Cell towers

Cell phones might appear magical, but really there’s a sophisticated infrastructure behind the scenes that makes them work. Cell towers are an important piece of this, as they house antennas and other important electronic equipment. When more people use our network, we use energy needed to run this equipment. We’re working to reduce energy consumption and maintain these sites by replacing tower light controllers and incandescent bulbs with LEDs, which can dramatically reduce energy consumption. We plan to complete this in 2013, realizing an average annualized energy savings of 1,898,550 kWh, equivalent to the CO₂ emissions from the electricity use of 163 homes for a year.

Learn more about AT&T’s effort to Manage Energy (PDF).

When we collaborate

No company is an island, and some of the best ideas are generated when we work together in appropriate ways to address big issues! Here are some groups we’re working with:

Collaborating to expand low income access to technology

• Since 2006, we have pledged more than $37 million in contributions and grants to support One Economy, a global nonprofit that works to increase access to broadband and has provided over 300,000 Americans with affordable broadband.

Working together for energy-efficiency solutions

• Smart grid — To help accelerate smart grid deployment, we’re engaging with various standards bodies and groups to address interoperability standards for smart meters so that they can communicate with in-home devices using unlicensed radio spectrum. Examples during 2011 include ZigBee Smart Energy groups, various Smart Grid Interoperability Program Priority Action Plans and working groups.
• The Green Grid is a global consortium dedicated to advancing energy efficiency in data centers and business computing ecosystems. We are a contributing leader.
• We work as a member and serve as the chairman of the board of directors of the Alliance for Telecommunication Industry Solutions (ATIS). We initiated and chair the Telecommunications Energy Efficiency (TEE) committee, which developed a methodology for measuring and reporting the energy efficiency of telecommunications equipment.
• Global e-Sustainability Initiative (GeSI) is an effort to foster open cooperation across international boundaries and promote technologies that advance sustainable development.
• As a member of Digital Energy Solutions Campaign (DESC) — a coalition of technology companies and environmental non-governmental organizations (NGOs) — we’re working to educate policy makers about the role of information communications and technology (ICT) in the shift to a low-carbon economy.

Learn more about our Industry and Government Collaboration (PDF).

Get smart, grid

When it comes to kicking our fossil fuels habit, public policy can help. In 2011, we worked with several state public utility commissions on issues relating to the privacy and security of consumer smart grid data. In order for smart grid technologies to work best, consumers want to know that their energy usage data is secure. We are committed to supporting consumer smart grid privacy and have been working with state commissions to identify effective, common-sense strategies to accomplish it. We have also been working with other groups associated with smart grid issues to protect consumers’ privacy on a nationwide basis.

Innovate today, transform tomorrow

The way we live tomorrow starts with what we dream today; innovation is happening everywhere. Here are some of the ways that we make it happen.

• “Fast Pitch” invites hundreds of developers and entrepreneurs each year to present their great ideas to executives who quickly determine if the project has potential.
• The AT&T Foundry™ innovation centers are fast-paced and collaborative environments where AT&T and technology providers team with developers to deliver customers the latest applications and services.
• The Innovation Pipeline (TIP) is designed to tap the collective imagination of our employees through what we believe is the world’s largest corporate crowdsourcing site. Ideas grow, get refined and become enhanced — and the best ones get turned into real products, applications and services for our customers.
• The AT&T Labs applies the expertise and unique research capabilities of some of the world's best scientists, researchers and engineers to maintain a strong focus on driving new innovations in networking, applications and data management.

Come explore at www.att.com/innovation.

Learn more about Innovation (PDF).

Innovating for accessibility

How do you make a product or service accessible to the broadest audience? This is a challenge we’re always working to meet. As a leader in the field of technology access, we embrace Universal Design. We encourage application developers and handset manufacturers to consider the needs of seniors and customers with disabilities when designing products and services by following Universal Design Principles.

Our Advisory Panel on Access & Aging (AAPAA) keeps us close to the needs of customers with disabilities. Comprised of national leaders in assistive technology, aging and cross-disability issues, AAPAA meets regularly with business unit leaders from across the company (from AT&T Labs to Marketing to Diversity) and provides ongoing input on accessibility efforts.  

Learn more about Accessibility (PDF).

Power your future

In August 2011, we challenged software developers to create innovative applications that deliver an environmental or energy efficient benefit through the Power Your Future mobile app contest.

During the contest, we had more than 100 entries that we narrowed down to four finalists. Congratulations to People Power! This application recommends ways that users can save money and reduce energy waste — in this case, through analyzing real data from a consumer's home monitoring system. The app also allows you to challenge the friends in your social group to see who can use less energy. The four finalists included Light Bulb Finder, Electrify, Good Guide, and our winner, People Power. All are changing the way we use our resources and helping customers make the right decisions about the environment.

Learn more about Innovation (PDF).

Making an impact with diverse suppliers

Diversity is smart business. We are aware of the importance of diversity and know that our markets, our customers, our ownership and our employees are diverse, and bringing together a wider range of perspectives drives innovation and success. This is why we are committed to working with a diverse collection of suppliers.

In 2011, AT&T spent $12 billion with minority, women, and disabled veterans business enterprises; representing 23 percent of our total procurement.

Also, we’re committed to programs to support diverse suppliers, such as:

• Operation Hand Salute program — connects participants with mentors to discuss operating in a global supply chain.
• Prime Supplier program — increases the use of diverse businesses through subcontracting and value-added reseller arrangements.

Learn more about Supplier Diversity (PDF).

Seeing the bigger picture — Engaging suppliers on sustainability

When you throw a stone into a lake, what happens? It doesn’t just sink, there’s a ripple effect. That’s how we view our relationship with our suppliers — we have a collective impact. We’re working with our suppliers to better understand our larger combined impact. We are actively engaging our suppliers to track, measure and improve their sustainable business practices. Current key initiatives include the following:

• AT&T Supplier Survey — AT&T conducts an annual survey designed to reinforce our expectation that our suppliers will follow sustainable business practices. The survey includes questions on energy efficiency, environmental protection, labor rights and GHG emissions.
• CDP Supply Chain Initiative — AT&T is also working with the Carbon Disclosure Project (CDP) to drive our top suppliers to a more standardized process that augments our annual survey and supplier engagement process. Each year we send the Carbon Disclosure Project Supply Chain Survey to suppliers who represent approximately 80 percent of our total spending.
• Supply Chain Energy Efficiency — AT&T is working with our major network suppliers to establish goals to improve the efficiencies of next-generation network equipment. We have collaborated with the Alliance for Telecommunications Industry Solutions (ATIS) in the publishing of a Telecommunications Energy Efficiency Ratio (TEER) metric. Looking into the future, this should enable AT&T to buy more energy-efficient equipment, resulting in a more efficient network.
• Strategic Supplier Sustainability Scorecard — AT&T measures the performance of its strategic suppliers on sustainable business practices. Areas of focus include the environment, health, safety, energy efficiency, greenhouse gas emissions, hazardous substances, labor and water.
• Suppliers Sustainability Awards — The AT&T Supplier Sustainability Awards were established to honor the suppliers that made outstanding contributions to our sustainability efforts. In 2011, we honored four suppliers that helped us advance our sustainability commitment in the areas of energy efficiency, alternative energy, environment and packaging.

Learn more about how we are Engaging our Supply Chain (PDF).

Good jobs

Good jobs. They’re so valuable — to the economy, to our company, to each of us. We know that to retain the best and brightest, we need to offer competitive pay and benefits.

Healthcare: We provide health coverage, life insurance and disability coverage. In 2011, AT&T afforded health and welfare benefits to nearly 1.2 million employees, retirees and dependents.

Unionization: With about 55 percent union-represented employees, we have the largest full-time union workforce of any company in America — more than the steel or airline industries and more than the “Big Three” automakers combined.

Environment, health & safety training: We provide job-specific EH&S training to all employees based on established guidelines, and record successfully completed courses in each employee's training record.

Injury rate: In the event an accident does occur, it is our policy to respond swiftly and effectively to protect our employees, company assets, neighboring communities and the environment. For U.S. operations in 2011, AT&T's OSHA total recordable occupational injury and illness rate was 2.14 per 100 employees. This is lower than the most recent average published by the Bureau of Labor Statistics for the telecommunications industry, which is 2.20 (for 2010).

As of the end of 2011, we had 256,420 employees.

Learn more about Good Jobs (PDF).

Demystifying the cloud

There’s a lot of talk about cloud technology. What is it exactly? At its simplest, it’s a hard drive on the net where you can keep data or applications for easy or shared access. Using the cloud means you don’t need to store anything on your device. Check out the video to learn more.

An AT&T-sponsored study from the Carbon Disclosure Project and Verdantix entitled Cloud Computing: the IT Solution for the 21st Century found that by 2020, large* U.S companies that use cloud computing can achieve annual energy savings of $12.3 billion and annual carbon reductions equivalent to 200 million barrels of oil. That’s enough to power 5.7 million cars for one year.**

AT&T provides a range of utility- and cloud-based solutions that give businesses greater flexibility, speed and control over their IT infrastructure and enable them to better match capacity with application demand. Find out about AT&T Cloud Services.

Learn about Environmental and Social Benefits from Technology (PDF).

*Represents the 2,653 firms generating revenues of more than $1 billion in the U.S.

**Based on Bureau of Transportation Statistics average mpg, Federal Highway Administration average annual mileage and the Energy Information Agency gallons of gasoline per barrel of oil.

Virtual travel realized

What if you could schedule a breakfast meeting with clients in London in the morning, a presentation in California in the afternoon and still be back for your kid’s soccer practice that evening? Telepresence makes this possible. It creates a life-size, in-person meeting experience with the depth and richness of a face-to-face meeting. An AT&T-sponsored study by the Carbon Disclosure Project and Verdantix (PDF) found that by 2020, U.S. business with revenues over $1 billion can achieve company-wide financial benefits of almost $15 billion by substituting Telepresence for some business travel and can cut nearly 4.6 million metric tons of C0₂… not to mention the price of your sanity!

We’re building out our own Telepresence use and so far have realized savings of more than $13.9 million in travel dollars and more than 8,261 metric tons of CO₂ equivalent emissions avoided in 2011.

Explore Telepresence and other enterprise solutions.

Learn more about Tackling Environmental and Social Challenges with Technology (PDF).

Regulated waste

AT&T processes much of its regulated waste (including universal, hazardous, exempt and special waste) through the AT&T Resource Recovery Center. (This does not include normal refuse handled by solid waste vendors or municipal waste disposal, but does include water removed and managed from underground vaults.) In 2011, more than 63 percent of the waste processed by the Resource Recovery Center — 7,837 tons out of a total of about 12,500 tons — was recycled.

Learn more about Managing Waste (PDF).

E-waste

E-waste — and its proper handling — are critical issues. In 2011, we collected more than 77,000 computers, monitors and servers for donation, reuse and recycling. This included:

• Roughly 15,000 desktop computers.
• More than 35,000 monitors.
• More than 8,100 laptop computers.

Learn more about Managing Waste (PDF).

Reducing what we use, recycling what we do

Reduce, reuse, recycle. We are mindful of the materials we use, and recycle where we can. Beyond traditional office recycling, we manage a program to reclaim network resources such as copper telecommunications wire and central office equipment. The AT&T Supply Chain Investment Recovery group works company-wide to reuse, sell and recycle materials. In 2011, the group sent less than six percent of the materials it received to the landfill! This meant we kept more than 50.1 million pounds of these materials from landfills.

Learn more about Managing Waste (PDF).

Progress toward goals

In addition to knowing where we are and where we've been, it's important to know where we're going. Setting goals helps us get there. See the progress we've made (PDF) toward the goals we set for 2011, as well as see our new goals for 2012 and beyond.

Key performance indicators (KPIs)

To assess how we're doing, we've established several key performance indicators (KPIs) to measure our progress year-over-year. We've identified these areas as those that are most important to our stakeholders and our business. See the table (PDF) to see the metrics behind our sustainability journey.

Global Reporting Initiative (GRI)

AT&T used GRI guidelines to determine the types of data to report in our 2011 Sustainability Report. The list of GRI indicators we reported on can be found here (PDF). We have aligned this report with the GRI G3 at an Application Level C.

GHG emissions detail

For those who would like additional detail about AT&T's greenhouse gas emissions, we have a Methodology and Process Detail Document (PDF). It outlines information such as the protocols we use, emissions factors, breakdown of emissions by gas, and sources — including source descriptions and calculation methodology. If you have any questions, you can write to sustainability@attnews.us.

Carbon Disclosure Project (CDP)

We submit our data to the Carbon Disclosure Project (CDP). CDP, which contains the world's largest collection of self-reported corporate environmental data, was backed in 2012 by more than 655 institutional investors representing more than $78 trillion in assets. This is our 2012 submission to the survey (PDF).

About AT&T

AT&T Inc. (NYSE:T) is a premier communications holding company and one of the most honored companies in the world. Its subsidiaries and affiliates — AT&T operating companies — are the providers of AT&T services in the United States and around the world. With a powerful array of network resources that includes the nation's largest 4G network, AT&T is a leading provider of wireless, Wi-Fi, high speed Internet, voice and cloud-based services. A leader in mobile Internet, AT&T also offers the best wireless coverage worldwide of any U.S. carrier, offering the most wireless phones that work in the most countries. It also offers advanced TV services under the AT&T U-verse® and AT&T DIRECTV brands. The company's suite of IP-based business communications services is one of the most advanced in the world.

Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at http://www.att.com. AT&T news releases and other announcements are available at http://www.att.com/newsroom and as part of an RSS feed at www.att.com/rss. Or follow our news on Twitter at @ATT.