Environment

Environmental efforts
In Norway, the energy saving programme Energy focus 2004 was completed, resulting in annual savings of NOK 6 million. A new energy related project has been initiated in 2005 - Energy management at Telenor - comprising Telenor's total energy consumption in Norway. The goal of this project is to increase Telenor's annual energy savings to NOK 10 million per year, and to increase the awareness and knowledge of efficient energy use. These projects clearly demonstrate that environmental efforts can make a difference. During the year, we also made preparations for a larger project of replacing 53,000 lighting fixtures containing the environment poison PCB. Over the next year, these lighting fixtures will be replaced by 41,000 new energy-saving fixtures that will contribute to a significant reduction in Telenor's total energy consumption.

The focus on radiation from mobile handsets and mobile antennas is growing, and Telenor wants to ensure that customers and employees have access to accurate and adequate information on these issues. We have therefore drawn up an impartial account of the research conducted in this field, and we have published a list of relevant questions and answers on the subject of radiation. This list has been made available on Telenor's web site.

During the year, an initiative was introduced to collect discarded mobile handsets. Together with mobile distributor Dangaard and Plan Norway, Telenor Mobil carried out a project combining two good ideas: The environment escapes dangerous waste in the form of old mobile handsets and Plan Norway receives important support for its programme work for children in poor areas all over the world. For each old mobile handset collected, a sum of NOK 50 is donated to Plan Norway. In total, enough handsets were collected to provide vaccines to 71,000 children in poor countries. New initiatives for collecting discarded handsets have been planned for 2005.

Telenor's environmental management system has during the year been extended to also include our international activities, and the work will be continued in 2005. This means that Telenor, in addition to compiling environmental data from Norway, will also compile similar data from the international companies operationally controlled by Telenor.

Environmental accounting
The key figures from Telenor's environmental accounts reveal that the total energy consumed through the management of buildings in Norway was slightly reduced, while increased international activities have resulted in an increase in the overall energy consumption. In 2004, the total energy consumption for Telenor's activities was 790 GWh. Breaking down this figure shows that 370 GWH (47%) was consumed in heating, cooling and lighting of buildings, 288 GWh (36,5%) was used in network operation, and 130 GWh (16,5%) was energy consumed in transport and work-related travel. More information is found here: http://www.telenor.com/csr/environment/key_figures/

Other events
Agreement on ethical procurement
Telenor has entered into an agreement for membership of the Initiativ for etisk handel (IEH) (Initiative for Ethical Trade). IEH will assist in the development of systems ensuring that acquired products are not manufactured under conditions that violate globally recognised labour and human rights (e.g. slavery, child labour, bans on joining trade organisations etc). This will contribute to secure Telenor's supply chains. All products procured by Telenor shall be produced under ethically acceptable conditions, and in accordance with the Group's ethical guidelines.

Fair coffee
In April 2004, an agreement was entered into for the supply of Max Havelaar coffee to 6,000 employees at Telenor's headquarters at Fornebu. The coffee, which carries the Max Havelaar guarantee label, ensures that coffee farmers in developing countries receive a UN estimated minimum price for the quality coffee they produce. This guaranteed minimum price covers production costs and secures a sufficient salary to farmers. The world market price for coffee is still very low and well beneath the UN estimated minimum price that coffee farmers receive through the Max Havelaar Fair Trade system.

Honourable mention for reporting
Telenor received honourable mention for reporting on social responsibility and the environment for the financial year 2003. This means that we have achieved success with our concise reporting, based on the information that we have made available on the Internet. We are saving resources in the form of paper, print and distribution, while ensuring that information is readily available. The jury evaluated information on all aspects relating to social responsibility (including the environment, social factors and economy).