Telenor is working systematically to reduce its burden on the environment and to develop products and services with positive environmental impacts. The environmental data presented for 2002 applies essentially to Telenor's Norwegian operations. Available environmental data for GrameenPhone (Bangladesh), Digi.Com (Malaysia) and Pannon (Hungary) is presented separately.

Lowering the group's energy consumption remains a high priority in our overall effort to reduce Telenor's impact on the environment. Total energy consumption for Telenor's Norwegian operations was 508 GWh in 2002 - a 5.6 percent decrease from the 2001 total of 537 GWh. Almost 87 percent of energy requirements in Norway are provided by renewable energy, such as hydroelectric power and district heating, based on heat-pump technology. The figure shows the development of total energy consumption for Telenor's Norwegian operations.

The new office complexes at Fornebu, in Bergen and in Trondheim make an important contribution to our reduced energy consumption. Innovative, eco-efficient solutions were employed in their construction and remain a feature of their operation. Harmonising environmental and economic objectives during planning has resulted in energy and space efficiencies, use of environmentally sound materials and minimal waste.

In 2002, average energy consumption for the office complex in Trondheim was 166 kWh per square meter, while the Bergen offices registered 98 kWh per square meter. The average for Norwegian office buildings was 225 kWh per square meter.

The Telenor head office at Fornebu obtains approximately 50 percent of its energy needs for heating and cooling via heat pumps that derive energy from seawater. Telenor aims to reduce energy consumption in buildings by 10 percent per square meter of heated space by the end of 2004 - a target that we anticipate will be achieved by a comfortable margin. Energy consumed operating the Telenor network constitutes 60.4 percent of our total energy consumption. In 2002, this amounted to 307 GWh, an increase of four percent on the previous year.

Discharge of CO2 by Telenor's Norwegian operations was 17,400 tonnes in 2002. Air travel and transportation by car are energy intensive, producing significant emissions of greenhouse gasses and other pollutants. Telenor made a conscious reduction of its business travel in 2002, and the resulting CO2 emissions were thus reduced by 22 percent - 3,900 tonnes. The figure shows distribution of CO2-emissions by activity.

These figures should be regarded within the context of our industry at large. According to one recent study, average CO2 discharge in 2001 for the 25 European telecom operators in ETNO (European Telecommunications Network Operators' Association) was 29.9 grammes per Euro of revenue, compared with Telenor's figure of 4.6 - reduced to 4.1 in 2002. An important factor in Telenor's comparatively favourable performance is our use of renewable energy sources (primarily hydroelectric), while many of our competitors rely on fossil fuels, such as coal and oil.

Of Telenor's CO2 emissions, 88 percent were a result of business travel. Our goal of freezing CO2 emissions at 2001 levels was attained.

In Norway, Telenor releases no harmful substances into water networks, beyond that which is channelled into municipal treatment plants. There were no reported incidents involving emissions resulting from our oil and diesel fuel storage installations.

Telenor's efforts to dismantle disused aerial lines continued in 2002, resulting in almost 500 km of line and 5000 masts being removed in Norway. The removal of discarded NMT 900 equipment was completed. Cable waste, radio cabinets and base station equipment was dismantled and transported to approved depots that specialise in storing discarded electrical and electronic equipment.

Telenor's objective is to optimise mobile coverage with a minimum negative impact on natural and cultivated landscapes. We therefore design mobile antennae so that they match the landscapes where they will be installed. Telenor also co-operates with other operators on common use of masts to minimise visual disturbance.

The debate around the possible health risks connected with radiation from mobile phones and associated installations continued in 2002. This is primarily the responsibility of the manufacturers. Nevertheless, Telenor has established a think-tank responsible for monitoring international research developments on this issue. Based on existing research results, there is no reason to assume that electromagnetic fields surrounding wireless forms of communication and transmitters are a health risk.

In the case of transmitters, Telenor continued to conform to limits for electromagnetic fields set by the World Health Organisation (WHO) and The Norwegian Radiation Protection Authority. Telenor Mobile continued to follow the principle of preventative action by ensuring that the indoor signal strength coming from external GSM antennae does not exceed a tenth, (normally 2-4 percent), of the permitted limits.

All Telenor Mobile's antennae installations are categorised as low output. Because radio waves are much weaker above, below and behind the antenna, individuals are cautioned to limit their exposure to these installations within a distance of three metres directly in front of the antenna. Telenor Mobile carries out frequent measurements to document the indoor signal strengths - from recently constructed and scheduled antennae installations. This evaluation process was also used in connection with the approval of new GSM antennae in two Norwegian hospitals.

By incorporating effective controls in the GSM network, Telenor Mobile has ensured that mobile phones never transmit signals stronger than necessary to reach the nearest base station. This implies that the effect of the electromagnetic field diminishes the closer the user is to a base station.

Telenor's Group Auditor is responsible for conducting annual environmental audits of the group's activities. In 2002, Telenor Mobile (Norway) was audited in connection with its handling of waste resulting from the decommissioning of the NMT 900 system. The audit concluded that the project had satisfied its obligations to existing regulations.

To create its first group-wide environmental footprint, Telenor began collecting environmental data from its overseas operations in 2002. Initially, this reporting will cover DiGi.Com (Malaysia), GrameenPhone (Bangladesh) and Pannon (Hungary). These three companies comprise approx 3,700 employees; 40 percent of Telenor's total overseas staff.

The reporting system will be expanded to incorporate the group's other overseas operations during 2003.