Sustainability Assessment Framework (SASF) Introduction 24 February 2016

The Sustainability Assessment Framework (SASF) 2 The overarching objective of this project is to develop a comprehensive sustainability assessment framework for products and services for the global ICT industry.

Benchmarking: Identify gaps, apply learnings (extract) 3 LEVEL I GENERAL STRUCTURE LEVEL II HORIZONTAL COMPARISON Services, networks and data centres are not addressed by most frameworks. Assessment of utility is done only by the minority of frameworks. While all frameworks cover environmental aspects, social aspects are often neglected. Most frameworks are not flexible enough to be adjusted according to the requirements of individual companies. They assess either a company or a product, while only the minority assesses both company and product. Criteria related to the extension of product life-span and usage times, remanufacturing, repair, disassembly, recycling of products and warranties are either not present in all the frameworks or are formulated in different degree of detail. Aspects related to data security and protection have not been adequately addressed in most of the standards. Most of the frameworks do not cover or do not adequately cover criteria related to human rights and labour issues in the supply chain.

EVALUATION OF TOOLS Road towards SASF 4 Webinars Cross-check results from first dialogue with 5 additional stakeholders 2. Stakeholder meeting Focused discussion on criteria and indicators with 10 external stakeholders + new 3 companies (Huawei, Telefónica, Samsung) 1. Stakeholder meeting 11 external stakeholders discussed the overall project plan and objective Case studies 5 pilots companies (Swisscom, Huawei, Deutsche Telekom, Orange, Telefónica) tested the robustness and practicability of SASF PILOT TESTING Current State Feedback from the pilots flow into the finalisation of SASF FINALIZATION Internal meetings An indicator workshop and a working session aimed to strengthen the acceptance of SASF internally FIRST DRAFT SASF AND GRADUAL IMPROVEMENTS

SASF Requirements 5 Comprehensiveness Practicality Modularity/flexibility Relevance Acceptance/credibility Environment Human rights Utility Indirect benefits Use and referencing of existing standards and tools Focus on most important aspects Applicable to diverse ICT product: current and future and their variants Applicable in very different companies in different ICT sub-sectors Focus on most important criteria and indicators Weighting between criteria and indicators possible and substantiated Transparency in criteria, criteria development and assessments

Result: A comprehensive assessment 6 Aspects Criteria

SASF structure: Human Rights > Raw material CriteriaSub-criteria H 1: Reduction of human rights risks in raw materials production H 2: Reduction of human rights risks in manufacturing/ assembly H 3: Reduction of human rights risks in in recycling / disposal H 4: Reduction of human rights risks associated with data security and privacy H 5: Reduction of human rights risks associated freedom of expression H 1.1: Direct or indirect conflict financing H 1.2: Other forms of conflict risks (e.g. grievance driven violent conflicts) H 1.5: Severe environmental degradation H 1.6: Active support of responsible mining projects H 1.4: Health & safety risks for workers and neighboring communities H 1.3: Child labor and other forms of human rights abuses 7

SASF structure: Environment > Examples 8 Screenshots from SASF Excel file

Result and Scoring 9 Total Sustainability Score: 240/ 300 Maximum 100 Points 70 Product A Maximum 100 Points 80 Product A Product A helps in reducing x Gt of CO 2 e emissions compared to the reference product Environment Human Rights Utility Total Sustainability Score: 80/ 100

Internal management tool for existing products and services Internal management tool for product development Current state: How to use the SASF? 10 SASF as a… Companies apply the SASF to evaluate existing products and services in terms of sustainability performance. The results are used to optimize these products and to create and manage product/service portfolios. Companies apply the SASF for product development purposes. The SASF serves as a list of requirements for future products/services and provides input to the product/service design process. Scenario

Current state: SASF online implementation 11

Our vision: SASF in the long run 12 Benchmarking products/services Based on scoring results the SASF allows the comparison/benchmarking of similar products/services of different providers/companies. Management standard In terms of a management standard the SASF is firmly rooted in applying companies. It can be used for external communication (e.g. “We operate in accordance with SASF”) and to support/communicate product/service portfolio management (e.g. 20% of our products/service fulfill the SASF aspirational level). Product label With regards to the scoring result, products/services are tagged with the SASF as “sustainable products”. Differentiation is possible in silver- (>80 points) and gold-level (>90 points) for instance.

13 The SASF is applicable to all companies in the ICT sector. SASF will support companies in policy decision making and the establishment of sustainable product portfolio. The assessment is based on four pillars: Environment, Human Rights, Utility and Benefits. Focus on three important components of ICT (networks, data centre and end-user hardware) allows for the definition of more specific indicators while being applicable to the majority of ICT products. Fixed set of criteria, sub-criteria and indicators for every component. The SASF measures performance, not absolute impacts. Benefits are captured in validated qualitative/quantitative statements. Key points summary SUMMARY

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