Annual
report 2020

Our strategy

2020 was the last year of implementation of the Orange.one strategic plan that we announced in September 2017, marking our new approach to long-term value creation. We aimed to become Poland’s first-choice telecommunications operator for consumers and businesses, at the same time creating a business model that will generate sustainable growth in sales and profits.

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2020 completes Orange.one strategy…

Essential to the value-creation plan were heavy investment in the fibre network and pursuing a convergence strategy. Development of business lines with growth prospects, as well as exploring unique market opportunities were necessary to offset ongoing pressure on our revenues coming from legacy services – which once constituted the core of our operations, and which have been in structural decline for a number of years. At the same time, we were radically transforming our operations to be more agile, digital and flexible, with a strong online presence and highly automated processes.

Moreover, we were also changing our internal culture. We want to work harder for the benefit of our customers; to be obsessed with improving their experience with Orange. Culture change at Orange Polska is also aimed at improving the work environment, so that our employees better identify with our goals and values, and gain confidence in their future careers with Orange. Last but not least, our value creation is reflected in our responsible approach to environmental and social matters. Our investments in connectivity make a substantial contribution to the development of Poland’s modern, digital society.

…which has been implemented with great success

We believe that the Orange.one strategy has been a success.

In our opinion, Orange Polska has considerably improved its market position in all key segments of the market, and has become a much more efficient operator. The crucial element was our investment in the fibre network, which supports our convergent strategy and provides our long-term competitive advantage. At the end of 2020, 5 million households were connectable with our fibre network, meeting the strategic ambition we formulated in 2017. Our share of fibre customers has tripled over the last three years, reaching 27%. We have achieved a major customer-base increase in all key service categories: convergence, fixed broadband and mobile. Simultaneously, our value strategy and fibre expansion have driven a very significant improvement in ARPO trends.

We have met all the financial goals set in our strategy, reversing prolonged negative trends and returning to growth. Our key measure of operating profitability, EBITDAaL (or, previous to 2019, adjusted EBITDA), has been growing for the last three years, while our revenues have been growing for the last two years. This growth is a result of the implementation of our convergence strategy, monetisation of fibre network investments, steady focus on value generation in our commercial activities, ‘more for more’ pricing strategy and very high savings on costs. Operating profitability has been improving despite continued structural pressure on high-margin traditional fixed-line services, the erosion of which almost fully filters through to profits. The growing operating profitability has led to an increase in cash generation and a decrease in net debt and leverage ratio.

At the end of 2020, we were ranked the number-one operator in terms of customer satisfaction, which had also been our strategic ambition. The highest-ever absolute level of NPS is a consequence of our prolonged and consistent efforts to improve all the elements of the ‘customer journey’, from network connectivity to portfolio structure, sales and customer care. We also believe that there is room for improvement in certain areas, and we will address it in the next strategic period.

Connectivity – best for fixed and mobile

Customers want fast, reliable and safe broadband access, and from their point of view the technology by which the service is delivered is less important.

It is our strongly held opinion that fulfilling customer needs requires first-class connectivity in both mobile and fixed. Mobile alone will not be sufficient. Fast fixed broadband is necessary to address the data demands of streaming services and heavier and heavier traffic, and at the same time to provide a desirable customer experience on the mobile network. In addition, a substantial part of our operations is dedicated to serving business customers who specifically cannot rely on mobile technology alone.

In 2015 we made a strategic decision to invest on a large scale in the deployment of a fibre to the home (FTTH) network. This investment is structurally improving our competitive position, and gives us leverage to win back market share in densely populated areas. It also constitutes a key engine for our commercial activities, being an important lever for our convergent strategy.

We have completed six years of investments, reaching five million households within the range of the service at the end of 2020, which fulfilled our strategic goal. That number includes the majority of households in big cities and also a significant proportion of smaller cities. It also includes around 200,000 households in more rural areas, where fibre access is covered by the government POPC programme (subsidised by EU funds).

Our FTTH network rollout strategy provides not only for the construction of our own infrastructure but also for wholesale agreements with other fibre network operators, where it is technically possible and economically viable. At the end of 2020 our network coverage included 950,000 households via the infrastructure of other operators.

In 2020 we covered around 800,000 additional households, broadly maintaining the very fast pace of deployment from the previous year. Last year we continued to focus on smaller cities and also on single-family houses as opposed to multi-family residences. Single-family houses constituted more than a third of total deployment in 2020. A substantial part of that deployment was carried out on other operators’ infrastructure. In total, at the end of 2020, single-family houses accounted for 15% of our total fibre footprint. On one hand, single-family houses carry a much higher construction cost; on the other hand, we notice far higher demand for our services due to much lower competition. The fibre service adoption rate in single-family houses at the end of 2020 approached 30%, compared to 14.5% for the whole fibre network.

To explore new opportunities and to better monetise our fibre investment, in 2018 we signed an agreement with T-Mobile granting wholesale access to our fibre network. The agreement covers around 1.7 million households located in deregulated zones, with access points built in multi-family residences on Orange Polska’s own infrastructure. This wholesale cooperation will contribute to faster monetisation of our investments in the fibre network, maximise usage of our infrastructure while avoiding fibre network overbuilding by other operators and accelerate convergence of telecom services in the Polish market based on fibre. The agreement is not exclusive: We maintain the right to offer the same terms of wholesale access to our fibre network to other operators.

We closely monitor our fibre network rollout with respect to monetisation: the number of customers and the value they bring. This depends mainly on the level of competition and our sales effectiveness. Investment in fibre is by nature long-term, but in our view this is future-proof technology, the parameters of which can easily be upgraded if necessary.

2020 was absolutely a record year for fibre customer take-up. We took advantage of the strong market momentum, accelerated by the pandemic, and capitalised on high demand for fast fixed connectivity – which is becoming a basic utility. Fibre generates the highest ARPO of all technologies and is a key driver of a turnaround in overall ARPO in fixed broadband. Customers more-and-more eagerly choose higher-speed options, which are additionally paid. We also charge customers in single-family houses PLN 15 per-month more to recover the higher deployment costs.

Fibre households connectable

(includes own rollout and connections to other operators networks)

Fibre customers (in k)

Mobile data traffic growth continues to be very robust. In total, traffic on our mobile network grew by 46% in 2020, with the dynamics being inflated by the pandemic.

To address this demand we continually invest in the quality of our network. By the end of 2020 our 4G/LTE mobile network reached almost the entire Polish population on an outdoor basis and 97.3% indoors. To accommodate robust growth of demand for LTE traffic, since 2018 we have focused on refarming the spectrum to allocate more for this technology and decrease the allocation for both 2G and 3G. This will allow us to use spectrum in a much more efficient manner and improve the customer experience. After completing refarming of the 900 MHz spectrum in 2018, last year we completed refarming of the 1800 MHz in 2020 and continued in 2100MHz. Refarming of the 2100MHz is being continued in 2021. The plan is to turn off 3G in this band by the end of this year, with the 2100 MHz band becoming fully allocated to LTE or LTE/5G. After finishing the refarming of the 2100 MHz band, the total bandwidth allocated to LTE services will increase to 50 MHz.

To strengthen network capacity we continue to pursue spectrum aggregation. Almost 85% out of over 11,600 LTE sites enabled carrier aggregation at the end of 2020, a significant advance on 2019. Around 4,000 of our base stations provide LTE technology on four layers of spectrum (800 MHz, 1800 MHz, 2100 MHz and 2600 MHz). In the years to come, 5G technology will become another important element of our mobile connectivity strategy. This will involve allocation of new spectrum, particularly in the 3.4-3.8 GHz band and 700 MHz.

Mobile and fixed data consumption (in PB)

Mobile

Fixed

Convergence – consolidating households’ telecom and media spending

We define ‘convergence’ as delivering a package of both mobile and fixed services, which fulfils the needs of an average household. In our view there is a significant potential for convergence in Poland as the vast majority of households still pay their media and telecom bills to different operators. Consolidation of these bills comes with both convenience and a financial benefit. In line with our value-focused approach, we made convergence our flagship product for Polish households. At the same time we limited advertising of our mobile-only or fixed-only offers.

Convergence gives us the following key benefits:

  • It constitutes our competitive edge, a key market differentiator. On one hand, cable operators do not offer mobile services on any meaningful scale. On the other hand, our mobile competitors historically did not invest significantly in fixed access networks. That is now changing, with the acquisition of Netia by Cyfrowy Polsat and T-Mobile gaining access to our fibre network. However, our footprint to offer convergence on a fibre network is by far the largest in the market, and we believe Orange Love, as the only hard bundle offer, is a unique value proposition for Polish consumers.
  • It is a good customer loyalty tool. Convergent customers tend to churn a lot less than non-convergent customers.
  • It allows us to upsell more services, winning a higher share of household media and telecom budgets.

Our Orange Love convergent offer continued to be our flagship proposal for Polish households in 2020.

The total number of B2C convergent customers increased 8% last year to 1.48 million. The Orange Love offer is a predefined set of fixed and mobile services, bundled together and sold at an attractive fixed price. The basic package can be extended with extra fees for additional SIM cards, higher fibre-broadband speed and additional TV content. On top of that we offer a wide range of smartphones at attractive prices. Importantly, Orange Love is available on any broadband technology (fibre and copper), and also on LTE positioned as home broadband. This allows us to market this offer all over the country, which is very efficient. In March 2019 we refreshed the Orange Love offer. We designed two new packages called Extra and Premium to make the choice easier for customers looking for richer TV content.

An important factor in the success of our convergent strategy is the quality of TV content, which is very important for Polish consumers when choosing a service provider.

In 2016 we changed the way we source our TV content, both on IPTV and satellite technology. It allowed us to be more flexible in the way we shape our offer and price it. In 2017 we became the first operator in Poland to launch a decoder that allows customers to watch 4K Ultra HD TV. Our TV offer is now fully competitive versus cable operators, allowing us to successfully build Orange’s reputation as a reliable content provider. We intend to remain a content reseller: our strategy does not foresee any investments in exclusive content. Our total TV customer base in 2020 increased by more than 2% and exceeded one million. That growth consists of robust growth of IPTV technology (14% in 2020), which is driven by expansion of our fibre footprint and a decline in customer base of satellite TV. More than 85% of TV customers were convergent customers.

Best customer experience and evolution towards digitalisation

Summary of our strategic efforts in 2017–2020

We have successfully completed the implementation of our customer experience strategy for 2017–2020, which focused on the following priorities:

  • Building positive customer experiences, as measured with NPS.
  • Improvements in customer journey, especially with respect to digital paths.
  • Customer centricity.

Building positive customer experiences

The customer is at the centre of everything we do. Therefore, we focus on building positive customer experiences as well as developing strong, long-term relationships, using modern digital channels. From portfolio development and process planning to customer care in all contact channels, we unite all our employees around the common goal of providing Orange customers with best experience.

For several years we have been assessing our customers’ experience with Orange through the NPS (Net Promoter Score) performance indicator. Our NPS is increasing gradually, which vindicates our complete focus on customers in all our activities. Orange Polska achieved the highest NPS score among Polish telecom operators at the end of the first half of 2020 and maintained this position (alone or shared), throughout the second half of the year.

Our comprehensive customer experience management is based on customer journey management. For the purpose of customer experience design, we use modern methodologies – Customer Journey Design and Design Thinking – which account for customer needs, opinions and emotions.

Over recent years we have focused on the development of digital paths of customer journey, introducing a number of innovative and often revolutionary solutions to the Polish telecom market:

  • Voicebot implementation: Since 2019, Max, our voicebot, has been answering 100% of customer calls to our main infolines. Its use of self-service systems – the percentage of issues which Max can resolve without a consultant – has growing steadily. If contact with a human being is necessary, Max forwards the call to the right consultant; as a result, the number of internal call transfers between consultants has fallen by more than one-third.
  • Chat development: We expanded the scope of AI-based assistance to include text chat (chatbot Max).
  • Robotic Process Automation (RPA): Further automation of customer care processes and implementation of innovative automated solutions (e.g. a bot/robot combination) have cut costs and improved operational efficiency by reducing time to complete, enhancing service quality and eliminating errors in business operations. In 2020, Orange Polska’s customer operations were supported by more than 100 robots.
  • New invoices: We introduced a new, clear and friendly invoice layout for customers of fixed, mobile and convergent services; a great majority of our invoices are delivered to customers in electronic form.
  • Fully digital Orange Flex offer: Using a dedicated application, customers can conclude an agreement with us, activate the service with e-SIM and subsequently handle all matters on their own or through chat.
  • Utech: We have implemented an interactive system for contacting our technical personnel regarding fixed-line installation or failures, which is based on an Internet link. This enables customers to directly contact the technicians commissioned with the task and to monitor the progress of work, including the geographical location of the installation or repairs team (like in the case of some companies offering transport services). In 2020, 500,000 customers used this solution and their satisfaction was significantly higher than in cases using traditional contact channels.

We involve our entire organisation, from frontline customer service personnel to the Management Board, in reinforcing our customer-centric culture. Each key decision is considered in terms of customer benefits. The senior management regularly reviews customer satisfaction surveys, identifying the required actions. Such review meetings with the Management Board are regularly attended by special guests: customers, who share their experience with Orange.

Since 2018, we have provided an internal e-platform, the Innovation Board. In particular, it is used for sharing knowledge and ideas about customer experience improvements. As a result, all employees can contribute their ideas for customer service enhancements, vote for others’ ideas, and participate in discussions. The best ideas are implemented. This produces tangible results: almost 200 ideas were submitted in the fourth quarter of 2020 alone, of which 30 were earmarked for implementation.

At Orange, we attach great importance to constantly enhancing our processes. Therefore, each Orange employee has an opportunity to get involved in improving customer experience quality through participation in ‘Listen and Respond Clubs’, which adopt a constant improvement methodology. Almost 730 such clubs with a total of about 3,700 employees involved in improvement initiatives have been established so far.

Increasing efficiency

Facing very high competition, ongoing pressure on our top line and the still- significant burden of our legacy, our strategy puts a lot of emphasis on improving our efficiency on the cost and capital-expenditures side. This area has been given new emphasis with the Orange.one strategy, which put particular focus on value in all aspects of our activities. Our ambition is to be an agile company, digital and flexible, with a strong online presence and highly automated processes, as well as a proven ability to cut costs and find efficiency savings.

With Orange.one, we redefined our commercial approach to one of greater balance between volume and value.

Orange Love convergent offers allowed us to distinguish ourselves from the competition and reach our commercial goals more efficiently. We have significantly reduced handset subsidies and optimised our distribution channel mix, which allowed us to improve direct profitability. To facilitate higher value-generation we have simplified and aligned our commercial offers, both convergent and mono, around a ‘more for more’ approach, cutting down on value-dilutive offers and introducing charges for every additional service.

Such a strategy was supported by more benign competitive environment, especially on the mobile market, where the competition has largely shifted from one based on price to one based on quality of the offer and customer service.

Our business model is a chain of interconnected processes that allow us to render our services.

These processes are usually complex, which is partly attributed to the incumbent operator status of Orange Polska. Within the framework of Orange.one implementation we have introduced a comprehensive transformation program to simplify, and where possible to automate and digitalise these processes. As a result, we have realised very significant savings in operating costs and capital expenditures.

We have been optimising our indirect operating costs for many years, generating hundreds of millions in savings every year.

We continued to do this under the Orange.one strategy. The savings came from the above-mentioned process improvements, which freed up resources, as well as from volume optimisations and simplification. We were more focused and more selective in resource consumption. We tackled all cost categories presented in the chart below. As one of our Orange.one financial ambitions we committed to a 12-15% reduction of this cost pool (which amounts to around PLN 4 billion) between 2016 and 2020. This figure was net of potential increases related to inflation, pressure on labour costs and costs related to new business development. We reached this target two years in advance: in 2018 our indirect costs were 14% lower compared to 2016. By the end of 2020 we delivered additional savings that bring the total level of reductions to 20%.

The largest cost category, and at the same time the most important source of savings, is labour. Over the past five years (2015-2020) we have optimised our employment by around a third, and we aim to continue. The scale of reductions is always negotiated with our social partners (there are 17 trade unions at Orange Polska). The social plan currently in force, signed in December 2019 and covering the years 2020-2021, enables us to continue with employment optimisation at a significant pace. According to the plan up to 2,100 employees may opt for voluntary departures in these two years, which constitutes 17% of the total workforce at the end of 2019. In 2020, 1,250 people will be eligible to leave the company within the framework of this social plan. We are significantly optimising not only full-time employees but also outsourced employees. The annual average number of outsourced employees between 2016 and 2020 went down by 58%

Another vital part of our optimisation effort is disposal of real estate. We have a large portfolio of real estate, mainly because of our long history. In the past we needed many more locations for our employees and our infrastructure. We are gradually consolidating office locations and optimising space for infrastructure. This process is supported by technological progress and changes in our business model. As a result, we are able to free up resources and sell unused real estate. This is a clear example of our discipline in capital reallocation: we are moving capital away from real estate into our fibre network deployment programme, which provides much better long term returns for the company.

Being responsible

In Orange Polska, we have been successfully implementing a policy of corporate business responsibility in all areas of our business for several years now. Our CSR strategy accounts for the company’s business objectives and fits into their implementation. The conclusions from a dialogue with stakeholders as well as market trends and social challenges for our industry in Poland and abroad have been key elements in its development. For us, social responsibility means an organizational culture which takes account of the expectations of employees and other stakeholders’ groups – customers, investors, suppliers, business and social partners as well as the environment – in creating and implementing our business strategy. We believe that such an approach generates benefits for the company and its environment, leads to long-term development and contributes to the improvement of everyone’s lives. Therefore, in Orange Polska we have created a social responsibility strategy which focuses on five areas which are of key importance from the point of view of our sector and our operations on the Polish market. In 2016 we launched the new CSR strategy for 2016-2020.

A strong foundation of this strategy is responsible management – our values, ethics and compliance and our dialogue with stakeholders as a tool for understanding their expectations. On this foundation are based four pillars of our CSR strategy:

  • Social and digital development – We make new technologies an ally to economic and social development.
  • Safe network- for the use of the latest technologies to be easy and risk-free
  • Clean environment – to pursue our business objectives with respect for ecological principles and in harmony with the environment
  • Engaged team – We build culture of co-operation in which employees feel respected, work towards achieving shared goals and have an influence on functioning of the company.

Responsible management and actions within these four pillars account for our social impact, which is analysed in 6 areas: economy, innovations, customers, environment, communities and employees.

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Until 2018 our financial results were in continuous decline for a number of years.

This was chiefly related to the following factors:

  • Adjusting to a very high level of competition, mainly in mobile services, in order to defend market shares.
  • Very high exposure to fixed-line telephony, which is being effectively substituted by affordable mobile services.
  • Regulatory regime limiting flexibility in terms of shaping commercial offers.

Proper implementation of the Orange.one strategy was supposed to lead to the development of a business model that would enable us to break this negative trend and gradually return to sustainable growth. In 2018 our adjusted EBITDA increased year-on-year. This was the first growth after 12 successive years of decline. Our revenues continued to decline; however the trend visibly improved. In 2019 we sustained growth of EBITDAaL (EBITDA after leases – our new profitability measure, under new accounting standard IFRS16) and also grew our revenues, for the first time in 13 years.

We have delivered on all of our financial goals set in Orange.one in each of year of the strategy. In some cases we even exceeded the initial expectations. Our revenues have been growing for the past two years and EBITDAaL for the past three years. We have kept capex within the limits and have significantly progressed with debt reduction.

Till 2017 Orange Polska was using IAS 18 accounting standard to recognise and to measure revenue.

In 2018, Orange Polska implemented the new accounting standard, IFRS 15. This standard changes the timing of revenue recognition for mobile contracts with subsidised handsets. Under IFRS 15, Orange Polska recognises more revenue upfront (as equipment revenue reflects the full value of the handset) and less revenue throughout the contract period (as service revenue is reduced by the amount of subsidy).

From 2019, Orange Polska is reporting its financial results under the new accounting standard IFRS16. The key objective of the new standard is to provide a single accounting method for lessees applicable to all lease contracts. Under IFRS 16, lessees recognise an asset in the balance sheet representing the right to use the leased assets in correspondence with the liability related to the lease obligations.

This change has been achieved through a combination of a progressive commercial turnaround and our focus on value coupled with great cost optimisation.

We have successfully implemented our convergent strategy, which was made possible thanks to the dynamic growth of fibre as monetisation of our considerable investments in this area has begun. A key element of this success was our particular attention to value in our commercial activities including ‘more for more’ price increases in mobile, convergence and fixed broadband. We also significantly developed the ICT area, which offers high growth potential and considerable synergies with our core telecom operations. These synergies have recently become higher than ever owing to ongoing digitalisation processes in enterprises. Over the last three years, we have increased our ICT revenues by 120%, mainly through organic development supplemented by acquisitions.

Simultaneously, we achieved very high cost savings. Since 2017 we have optimised indirect costs by almost PLN 600 million or 15%. This was done despite inflationary pressures in areas such as labour or electricity costs, so the effort to achieve the savings was even greater. Savings were generated across all cost groups, including labour, outsourcing, general and administrative, energy and network maintenance costs. They resulted from the comprehensive transformation of Orange Polska’s processes at each stage of our business model: networks, products and services, distribution and customer care. The process transformation aimed at simplification, automation and digitisation.

Operating profitability has been improving despite continued structural pressure on high-margin traditional fixed-line services, the erosion of which almost fully filters through to profits. The growing operating profitability has led to an increase in cash generation and a decrease in net debt and leverage ratio.

We reversed multi-year negative trends and delivered a financial turnaround

In presenting the Orange.one strategy we also discussed our ambitions regarding development of digital relations with customers and growth in certain adjacent areas, including: Orange Finance, Orange Energy, sale of devices and Orange Smart Care. We made significant progress in these areas, but we see much more room for further improvement and we will address this in our next strategic period.

Our shops remain the most important distribution channel, but we are gradually increasing our share of online sales. We obviously benefit from digitisation of the economy accelerated by the pandemic. We have an ambition to increase our pace of digitisation – through better and more popular IT tools and simpler processes.

We have succeeded in some adjacent areas and failed in others, as should be expected when developing new areas of operations. We gave up Orange Finance a few years ago as we concluded that the model of operations was not optimal. We continue to develop Orange Energy, though it is a challenge given the complicated nature of the energy market. We have ideas on how to grow Orange Energy further, taking into account changes such as the focus on green energy. Sale of devices has grown dynamically. In 2018 we introduced the option for customers to buy equipment independently of their contract for service, which is growing every year. Nonetheless, we believe that we can and should be able to secure a greater share of this market from the retail chains. Finally, we are very pleased with Orange Smart Care as a value-added service. In Orange Smart Care, the customer pays a monthly fee insuring his smartphone against various damages. Revenue growth is very significant here. Every third smartphone we sold in 2020 included Orange Smart Care.

So even though not everything went perfectly, we easily reached the targeted combined level of revenues from these areas.

We intend to announce our new strategy in June of 2021. We expect it to be the continuation of Orange.one in its main pillars, while adding some new elements. Certainly, its most important element will be the 5G network development, which opens up a lot of new perspectives in both business and consumer markets. The FiberCo project that we have recently announced will mark our different approach to expanding the pool for our fibre service. This endeavour will allow for investment monetisation in retail and in wholesale operations.

We also want to become a more innovative company, focusing to a greater extent on artificial intelligence and virtual reality. Furthermore, there are growing volumes of data globally which need to be stored and analysed, and we want to be involved in this process. We see development opportunities for our Company in the area of digitisation of e.g. sales and customer-relations processes.

Importantly, we strive to consider the impact of our operations on both the economy and the environment, so sustainable development will be another major element. We intend to diversify our energy mix, so that a portion of it will come from renewable sources. We will assist our customers in making more eco-friendly choices, such as by enabling the recycling of broken handsets and buy-back of those no longer used.

Finally, from financial perspectives our ambition is to continue to improve our results, but unlike in the Orange.one strategy we want growth in the new plan to stem mainly from profitable revenue growth rather than from cost savings.

We also aim to better utilise our assets which should benefit our ROCE (return on capital employed) ratio. We would like also to return to shareholder remuneration.

Understanding and internalising the climate-related risks and opportunities of the modern green context is a must in today’s business environment.

Climate has also become an important driver for long-term value creation for all our stakeholders: customers, employees, shareholders, local communities and society at large and, obviously, the environment.

At Orange Polska, we have always prioritised our environmental responsibility, and we are convinced that green must be an integral part of both our strategy and day-to-day business activities. Everything that we plan and do, within Orange Polska’s internal and external activities, must be put within a green context. We have named this approach #OrangeGoesGreen.

Within this framework we have developed a climate strategy at Orange Polska of which the key goal is to become climate neutral and achieve Net Zero Carbon by 2040, ten years ahead of the EU climate goals in the Green Deal Strategy or the GSMA recommendations for telecoms operators. Neutrality will cover both direct and indirect own emissions (Scopes 1 and 2 of the GHG Protocol) and emissions in the value chain (Scope 3).

Our first period of action is 2025 and during this period our actions will be concentrated in the three main priorities.

 

Priority 1: Responsibility for reducing our CO2 emissions and the resources we consume.

  • Reducing our CO2 emissions in Scopes 1 and 2 of the GHG Protocol (direct and indirect own emissions) by 65% compared to 2015.
  • This goal will be achieved primarily through increasing the share of renewable energy in our energy mix to at least 60% by 2025, based on long-term procurement agreements directly with renewable energy producers (PPAs), and through further work on network energy efficiency. Deployment of new, much more energy efficient technologies such as fibre and 5G will also contribute here. Average electricity consumption of fibre is around 80% lower compared to copper.
  • Preparing for Scope 3 emissions reduction (emissions by suppliers, customers and employees generated in relation to Orange Polska activity), including the implementation of eco-design.
  • Optimising other resources consumed by Orange Polska.

 

Priority 2: Value that we can create for our customers and all stakeholders thanks to our climate action.

  • Developing and selling commercial services supporting our B2C and B2B customers’ green challenges (and in particular solutions allowing them to reduce emissions or resource consumption).
  • Dedicated green offers and communication to customers (in particular regarding the climate footprint of Orange Polska services and the possibility of reducing or neutralising that footprint), as well as end-to-end management of green concerns in the experience of Orange Polska customers.
  • Circular economy in the operations of Orange Polska:
    • Collecting, buying back, recycling, repairing mobile phones;
    • Refurbishing CPEs (modems, set-top boxes);
    • Using refurbished equipment in Orange Polska’s network.

 

Priority 3: Impact on the green, digital transformation of the Polish economy that we can have as the green leader of Polish business

  • Internal communication and education to engage our people.
  • External communication and building Orange Polska’s image as ‘the green leader’.
  • Market and regulatory relations.
  • Financial and extra-financial reporting.
  • Consistently including climate and environmental angles in our decision-making.

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