Responsible approach to raw materials

Since we don't manufacture any products, our most important lever is purchasing. We demand an unambiguous policy on responsibility and sustainability from our suppliers. We use the resources needed by our business as sparingly as possible.
Transmission and switching units for our mobile network, mobile phones and all their accessories, computers, printers, office furniture, batteries and paper - these are all products that we purchase on a regular basis. Costs are not the only factor when we make our selection. We also want to ensure that the manufacture of the specific products is structured to have minimum impact on the environment and the community. This was our aim in drawing up our guidelines on environmental and ethical procurement in 2008. These guidelines are now an important platform for our purchasing activities.
What we expect from our suppliers
Our ecological procurement guidelines request that our suppliers implement an environmental management system that is comparable to the ISO 14001 certification applied by O2. Furthermore, we expect them to continuously work on improving their environmental management system. Our objective is to ensure that the raw materials and other resources we purchase are extracted and produced in conditions that are environmentally sustainable.
Coordinating closely with suppliers
In the year 2009 we intesified the exchange with our most important suppliers. So far we held extensive consultations with the suppliers, from whom we procure 20 percent of our purchasing volume. This process is being continued in 2010 with the objective of explaining the details of our business principles and the formulated requirements to the other top 10 suppliers.
Sourcing of raw materials not purchased by Telefónica O2 Germany
We are well aware of the issues surrounding materials like coltan and tantalum that are so important for the manufacturing of mobile phones and the fact that our requirements do not go far enough in respect of these materials. Coltan and tantalum are valuable raw materials that mainly come from Africa. The profits from the sale of these materials are frequently not received by the countries and used for the benefit of their populations. Quite the contrary, they are frequently deployed to finance civil wars. Our parent company Telefónica SA commits us to supporting the sector initiatives developed by the Global e-Sustainability Initiative (GeSI) and the Electronic Industry Citizenship Coalition (EICC) designed to reduce the negative social and environmental impacts brought about by extraction of these raw materials. We are also extremely interested in pursuing the development of a chemical fingerprint by the German Institute for Geosciences and Natural Resources. The aim of this fingerprint is to have the capability to trace the origin of the coltan used in the future.
Using paper appropriately
Our consumption of paper enables us to exert a direct influence on conserving raw materials such as water and wood. We therefore only purchase paper that has been produced exclusively with wood grown under sustainable forestry management. This is verified with PEFC certification (Programme for the Endorsement of Forest Certification Schemes).
Storing fuels safely
The generators that are used to supply emergency electricity to our offices and customer centres are powered by diesel. We store a total of 38,200 litres of diesel fuel at several locations. All 13 tanks have a double-wall design for safety reasons and they are tested for safety by the German Technical Inspectorate (TÜV) every five years. As in previous years, there were no incidents in 2009.
Avoiding ozone-depleting gases
Our mobile phone base stations have to be continuously cooled. Coolants such as chlorodifluoromethane are used in the cooling process. This has been classified as ozone-depleting and use has been prohibited in new installations since 2000, although usage is permitted to continue in existing units. When we upgrade our systems, we are therefore transferring to equipment that does not use ozone-depleting gases and we ensure that the old installations are dismantled in a process compatible with climate protection. This involves sustainable extraction of the gas with maximum climate compatibility. In 2009, we exchanged 40 units, leaving 169 air-conditioning systems based on the use of chlorodifluoromethane.

The volume of coolants damaging to the climate yields the following footprint: In 2007, we used 834 kilograms. In 2008, the volume came down to 675 kilograms. In 2009, we reduced the volume to 536 kilograms.
Saving water
As a telecommunications company, our water consumption is relatively low compared with other sectors. Water is only used in our offices and shops. In 2008, we analysed the total consumption of water at O2. Extrapolations and comparator values formed the basis for this. Our statistics indicate that we used a total of 71,961 cubic metres of water in our offices and shops. In 2009, our water consumption fell to 63,172 cubic metres1). Our offices are located in modern buildings. Most of them have been designed to conserve resources. For example, they are fitted with water-saving toilets. This means that the measures for further restricting water consumption are very limited.
1) In part this figure rests on a projection. Partly the water consumtions from 2009 and partly those from 2008 were applied as a basis.