In 2024, the Company continued to promote the development of key activities as a Collective Benefit and Interest Company (BIC). It actively participated in different spaces where its work as a BIC Company was made visible, highlighting its presence in the Global Compact Congress, 5th Sustainability Forum 2024 – ANDI, etc. At the same time, it continued to offer solutions through special promotions in a marketplace exclusively for BIC clients.
In compliance with Article 1 of Resolution 200-004394 of the Superintendence of Companies, which establishes the guidelines for the preparation of the management report of BIC companies, the Company has prepared this Responsible Management Report following the GRI (Global Reporting Initiative) Standards.
The activities prioritized by the Company in the five dimensions are detailed below:
- They incorporate a social and environmental purpose that goes beyond maximizing the economic interest of their shareholders.
- They ensure the fulfillment of the described purpose so that the directors and managers of the Company can maximize the social and environmental interest.
- They guarantee transparency in the reporting of their business impact in five dimensions: business model, corporate governance, labor practices, environmental practices and community practices.
Business
Model
To procure goods or services from local, minority and women-owned businesses and give preference in contracting to suppliers of goods and services that implement fair and environmental standards.
The highest percentage of the Company’s suppliers continued to be of local origin (74 %), and the amounts awarded to companies incorporated in Colombia increased from 89 % in 2023 to 90 % in 2024.
On the other hand, the Company has made progress in the sustainability assessment of its suppliers through IntegrityNext, analyzing 75 high-risk suppliers. So far, 52 % of them have been evaluated, strengthening risk management and transparency in the supply chain. In addition, in partnership with Achilles, 17 allied suppliers were evaluated for compliance with Telefónica’s Responsible Business criteria, with sustainability scores between 87 % and 98 %. However, the Commercial area and local suppliers require improvement, especially in Occupational Health and Safety (OHS), Human Resources (HR) and Responsible Business Principles (RBP).
In 2024, the Allies Model in Colombia was reinforced with comprehensive audits to 17 contractors, 18 on-site audits (37 % coverage) and 610 administrative audits. We also implemented OSH technical roundtables for high-risk tasks, induction and reinduction sessions for 17 allies, and communication channels such as the Allies Mail and quarterly newsletters. These actions seek to improve supervision, strengthen OSH protocols and optimize supplier management, ensuring compliance with social, environmental and labor standards in the supply chain (see more in chapter 10 – Responsible Supply Chain Management).
Corporate
Governance
To create a handbook for its employees, in order to set forth the values and expectations of the Company.
To disclose the Company’s financial statements to its employees.
The Principles of Responsible Business are the ethical code that define the Company’s values and expectations, the way of working to achieve relationships of trust with stakeholders, guiding individual and group actions.
In 2024, these Principles were communicated and the virtual course was promoted, with 95 % of the workforce taking the course. In addition, in 2024, Telefónica Movistar Colombia reinforced its ethical culture through training and compliance awareness. A mandatory training program was implemented with courses on the Code of Ethics, Anti-Corruption, Information Security and Privacy, achieving high completion rates (99 %, 97 % and 98 %).
In addition, Compliance Management provided 31 internal and external trainings on ethical principles, anti-corruption and conflicts of interest. Furthermore, 100 % of employees in sensitive positions completed the integrity course, and 460 new hires received key materials and participated in training sessions. We trained 1,026 employees and 66 Experience Centers in strategic areas such as B2B and B2C (see more in chapter 8.2 – Ethics-Based Culture and Responsible Business Principles).
There are several channels of communication with employees, both face-to-face and virtual, that allow us to keep them abreast of the Company’s financial situation. The Management Meeting, the President’s Office emails, the lives in Workplace and the website are some of the channels through which employees are informed of the financial results. In 2024, Telefónica Movistar Colombia strengthened internal communication with 15 conversations led by the CEO and 145 by regional directors and managers. Conexión Regional, a monthly format that highlights the progress and impact of each region on business objectives, was implemented. In addition, quarterly management meetings, in a hybrid format, brought together 1,300 employees for discussions on key indicators and innovation, with cascade dissemination to ensure company-wide reach.
Labor
Labor
Reasonable salary and analysis of salary differences among its employees.
Flexibility in working hours and telecommuting options, without affecting remuneration.
For Telefónica Movistar Colombia, it is of great importance to have a solid and consistent salary structure that recognizes individual performance. The Company values the importance and impact of each position within the organization and is competitive in the national salary market.
The salary structure is based on a systematic process that covers from the description to the salary allocation for the organization’s positions, as well as the constant comparison with the market to determine the competitiveness of salaries. This process is carried out based on the position and its valuation and impact on the organization, not on its occupants, so gender is not a determining factor in the calculation of the salary allocation, nor to evaluate its performance in the market (see more in chapter 6.4. Human Talent Management – Salary).
The Company offers options for a hybrid work model with flexible working hours and work at home initiatives, as well as initiatives that promote the quality of life of employees with time and experience benefits, such as the UNO Program and Movistar Moments (see more in chapter 6.5 Human Talent Management – Well-being, Teleworking and Work-Life Balance).
Environmental
Environmental
Annual audits with disclosure of results and employee training on the social and environmental mission of the Company.
Monitoring greenhouse gas emissions, implementing recycling programs, increasing the use of renewable energy sources and encouraging suppliers to conduct their own environmental assessments.
The Company has an Environmental Management System (EMS), structured under the ISO 14001 standard, certified since 2007. In 2024, the Environmental Management System (EMS) and Occupational Health and Safety (OHS) were jointly certified.
In 2024, Movistar conducted 27 internal and supplier audits, covering 82 days, to improve its Environmental Management System.
Strengthened sustainability training with courses on carbon footprint, circular economy, sustainable finance and energy management, aimed at key roles. It also launched the ESG Academy, a global space to promote a culture of sustainability with courses on Eco Smart, Taxonomy and climate change.
The Company also set up an intranet site with key environmental information, including policies, indicators and results, thus promoting environmental awareness and commitment among its employees and partners. Within the training program, in order to strengthen the knowledge and training in environmental issues of employees and partners, the operational controls defined in the Company were reinforced, and solutions were implemented for the green transition, purchase of renewable energy, waste management and classification, reporting and monitoring in Gretel for loop partners, emergency preparedness and response, environmental training for auditors, among others.
On the other hand, the Company has established clear goals to reduce emissions, aligned with its products, services and network expansion. This commitment impacts the variable compensation of employees and is linked to Sustainable Financing contracts with banks.
The climate action plan includes the quantification of GHG emissions, the definition of objectives and the implementation of actions. Annually, energy consumption and other key factors are reported and verified to calculate the carbon footprint, with AENOR certification. In 2024, scopes 1 and 2 emissions totaled 14,841 tons. Thanks to its energy efficiency program, the Company has reduced its emissions by 73 % since 2015, avoiding more than 39,500 tons of CO2.
In addition, it continues to make progress in the use of renewable energy, reaching 92.7 % consumption in its own sites and 85.4 % in the total operation, including third-party sites, consolidating its commitment to sustainability and energy transition.
In relation to waste management and promotion of the Circular Economy, in 2024, Movistar managed 11,398 tons of waste generated in network maintenance and operation, prioritizing circularity and regulatory compliance. To guarantee traceability and control, working groups and the GreTel tool were implemented, ensuring environmental reporting.
The circular economy was also promoted through the refurbishment of 520,163 pieces of equipment, optimization of maintenance and the sale of scrap copper, recovering 9,868 tons.
Thanks to these initiatives, 99.7 % of waste was recycled, minimizing disposal in landfills and incineration and promoting sustainable processes.
Additionally, suppliers are encouraged to carry out their own environmental assessments. The Supply Chain Sustainability Policy defines precisely that the supplier must have or be in the process of having a documented environmental management system that guarantees effective planning, action and control of the most relevant environmental aspects of its activity. This system must meet the requirements of ISO 14001 or other similar internationally recognized standards (see more in chapter 4. Environmental Management).
Practices with
the Community
- Encouragement of volunteer activities and creation of alliances with foundations that support social works in the interest of the community.
Thanks to the Corporate Volunteer Program, the Company mobilizes its employees to generate a significant social impact, addressing challenges such as social vulnerability, digital and social innovation. In 2024, 73,646 people from 44 municipalities benefited, thanks to the solidarity of 3,022 volunteers, who donated 23,341 hours of their time participating in 253 initiatives nationwide. This program focused on addressing three major social challenges: social vulnerability, digital vulnerability and social innovation.
In the area of social vulnerability, activities such as the International Telefónica Volunteer Day (DIVT) and the Christmas Campaign impacted 67,791 people, promoting social and environmental inclusion.
In reducing digital vulnerability, the Foundation benefited 4,331 people through programs such as the Digital Rebirth School and digital literacy actions.
In social innovation, 1,524 people participated in initiatives such as the Inclusive Robotics School and The Games for Good, promoting the inclusion of rural communities and girls in STEM.
Within the framework of this program, donations of COP 47,384,371 were also collected thanks to the generosity of 150 employees of Telefónica Movistar Colombia and Fundación Telefónica. These funds were earmarked for the purchase of school kits, which will be delivered in February 2025, contributing to the educational strengthening of communities in different regions of the country (see more in chapter 14.3.6. Fundación Telefónica Movistar Colombia – Social Action and Volunteer Program).
Fundación Telefónica Movistar Colombia impacted more than 1.7 million people through programs such as Digital Education, Digital Employability and Entrepreneurship, Digital Knowledge and Culture, and Corporate Volunteering (see more in chapter 14.2 Fundación Telefónica Movistar Colombia – Overall Achievements and Results).
In addition, it strengthened its collaboration with the Company and strategic allies, consolidating its position as a benchmark in digital education. This was achieved through participation in key events and the signing of agreements, establishing lasting alliances with governmental and territorial entities that have strengthened its recognition and relevance (see more in chapter 14.4. Fundación Telefónica Movistar Colombia – Collaborations and Alliances).
The following is a summary of the fulfillment of activities for each of the BIC Company’s dimensions:
Purchases from locally sourced companies. Preference to suppliers with fair and environmental standards:
74% Company of local origin and 90% securities awarded to companies incorporated in Colombia.
Sustainability performance audit process of critical suppliers and allies: Integrity Next and Achilles.
Manual for employees with societal values and expectations:
Principles of NR
Disclosure of financial statements with employees:
Quarterly Management Meetings, monthly CEO president’s mail with results, Regional Connection, etc.
Reasonable salary and analysis of salary differences:
Remuneration Policy and Nominating Committee.
Flexibility in working hours and telecommuting options, without affecting remuneration:
UNO Program and Movistar Moments, E-Work, Flexible Schedules.
Environmental audits (outreach and training)
17 years certified in ISO 14001
GHG monitoring, recycling, renewable energy and suppliers with assessments:
-73% GHG emissions from
92.7% renewable energy
Supply Chain Sustainability Policy.
Encouragement of volunteer activities and creation of alliances with foundations that support social works in the interest of the community:
+3,022 active volunteers
+1.7 M beneficiaries in FTM programs: ProFuturo, Conecta Empleo, Piensa en Grande, Volunteering and Knowledge and Digital Culture.