Your Excellency Secretary General,

I am pleased to confirm that the Emirates Telecommunications Corporation “Etisalat” reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

These principles have always been part of our corporate culture and since signing with the UNGC we have reinforced their application across our footprint building a structure that will have a sustainable impact for years to come.

In this our first annual Communication on Progress, we describe the results of initiatives already in place as well as the proactive actions taken since making our initial pledge.

We also confirm our commitment to share this information with our stakeholders using our primary channels of communication.

Etisalat values the guidance and leadership of organisations such as the UNGC.

Yours sincerely,

Ahmad Adbulkarim Julfar
CEO
Etisalat Group

Human Rights are widely applied throughout the Etisalat Group and its operations.

As a signatory of the United Nations Global Compact we are also committed to using our influence to ensure compliance with generally accepted human rights articles within our value chain.

Etisalat Group is therefore proud to follow a zero-tolerance policy with regards to abuses of human rights within its value chain. Etisalat Group reserves the right to terminate business with a supplier with serious breaches of the Standards contained in this Policy and where the supplier consistently fails to take corrective action within an agreed timescale.

Concrete Action 1 – Responsible Supply Chain Policy

In 2013 we have taken the proactive step of announcing our responsible supply chain policy which may be found in our first CSR & Sustainability Report Page 75 http://www.etisalat.com/en/system/docs/reports/Etisalat-CSR-Sustainability-Report-2012_lowres.pdf.

Etisalat Group has introduced this policy and presented it to teams from Afghanistan, Benin, Niger, Nigeria, Togo, Sri Lanka and UAE as well as its satellite service provider, Thuraya, at its annual Etisalat Social Investment Summit in Dubai in 2013.

The report has also been shared with key stakeholders participating in an IIR Middle East organised conference – the CSR Summit on May 21-23.

Concrete Action 2 – Supply Chain Inspection
Following the validation of the above Supply Chain Policy the Etisalat Group has commenced an inspection of its supply chain which will include its top twenty global suppliers. 10% of its supply chain have been engaged at time of this report.

Etisalat Group will ensure that its supply chain meets the same standards as advocated by the UNGC. All suppliers must report their concrete actions and improvements as described within the UNGC Communication on Progress protocol to meet a 100% performance evaluation in that period.

Targets for 2013-14
• Engage with top global suppliers and complete meetings
• Evaluate readiness to participate in the ‘Joint Audit Cooperation’ and/or other industry efforts
• Promote Supply Chain Policy to remaining Etisalat Operations.

The information contained in this report is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate, complete and timely information, we do not no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future.
All rights reserved.

For the Etisalat Group: being responsible for its employees means building a company that understands and lives its values and which nurtures a motivational culture. To do this, it is attentive to the expectations and needs of all employees. Etisalat is committed to placing men and women at the heart of its development strategy and this is accompanied by strong social goals e.g. to be among the preferred employers in the main countries where it operates.

In many of the markets in which Etisalat operates, trade unions are not legal. However, in those where unions do exist, like Pakistan and Atlantic Telecom’s markets, and even in those where they do not, the Etisalat Group extends great efforts to ensure that a constructive dialogue ensures between all stakeholders.

Given the footprint in which Etisalat operates, and the free movement of talent across borders, the Etisalat group sees the diversity of its teams as a key asset. The Etisalat Group has long been convinced that through encouraging diversity and equal opportunities, the company is more creative and innovative. This results in more satisfied customers, better corporate performance, and an environment that attracts the best talent.

Etisalat also supports those with special needs or who experience other difficulties entering the labour market and have opportunities in different areas of its business.

Concrete Action 1 – Responsible Supply Chain Policy
In 2013 we have taken the proactive step of announcing our responsible supply chain policy which may be found in our first CSR & Sustainability Report Page 75 http://www.etisalat.com/en/system/docs/reports/Etisalat-CSR-Sustainability-Report-2012_lowres.pdf.

Etisalat Group has introduced this policy and presented it to teams from Afghanistan, Benin, Niger, Nigeria, Togo, Sri Lanka and UAE as well as its satellite service provider, Thuraya, at its annual Etisalat Social Investment Summit in Dubai in 2013.

The report has also been shared with key stakeholders participating in an IIR Middle East organised conference – the CSR Summit on May 21-23.

Concrete Action 2 – Supply Chain Inspection
Following the validation of the above Supply Chain Policy the Etisalat Group has commenced an inspection of its supply chain which will include its top twenty global suppliers. 10% of its supply chain have been engaged at time of this report.

Etisalat Group will ensure that its supply chain meets the same standards as advocated by the UNGC. All suppliers must report their concrete actions and improvements as described within the UNGC Communication on Progress protocol to meet a 100% performance evaluation in that period.
Concrete Action 3 – Education Programs
Providing education support is a concrete action to help end child labour. Etisalat supports educational institutions as described in its CSR report for 2012.
http://www.etisalat.com/en/system/docs/reports/Etisalat-CSR-Sustainability-Report-2012_lowres.pdf.
Targets for 2013-14
• Effective engagement with GSMA Connected Women Group
• Continuation of existing community engagement programs and development of relationships to enhance impact of these initiatives

The information contained in this report is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate, complete and timely information, we do not no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future.
All rights reserved.

Green ICT is a core component of Etisalat’s business strategy and commercial portfolio and has been for many years. The company values and nurtures the energy and dynamism needed to achieve the very best, striving for excellence in building a sustained environment forthe future.

Etisalat is committed to provide telecommunications and broadband services in a manner that strikes a balance between economic, social and environmental needs. It will minimize the environmental footprint (water, energy, waste and greenhouse emissions) of its operations by pursuing environmentally sustainable practices in our technical, commercial, managerial and administrative activities and services.

Etisalat fully appreciates the additional value that is created by reducing costs and creating new revenues based on the principles of eco-efficiency, internal carbon management and reduction of energy consumption. It also provides its customers with green and low carbon services to help promote an environmentally sustainable economy.
In telecoms, the core environmental concern is the network which must be managed for its waste output, energy consumption (diesel and electricity) as well as the visual impact it has on the environment. Due to the large scale deployment of networks, a standardised approachis required.

In 2010 Etisalat began the journey of implementing a Global Environmental Management System based on the principles of ISO 14001. This sets guidelines for the management of Group companies to ensure a consistent approach to network deployment, and facility management. Etisalat is in the process of generalising best practices across all countries and adopting eco-efficient criteria.

Etisalat’s investment in next generation broadband infrastructure is also helping reduce consumption and emissions. In its own studies, the deployment of fibre optics has helped reduce power consumption by 70% and emissions by 80%. Etisalat expects more improvements from the deployment of efficient 4G networks.

It has also been identified that Etisalat’s offices, retail outlets and call centres create waste and consumption issues that need to be managed. Etisalat is developing systems to help reduce this impact and also assist its channel partners and customers in becomingmore efficient.

In the UAE, Etisalat has completely eradicated paper billing for E-Vision television services, and has incentivised customers to register for electronic billing through promotions and advertising. Etisalat is also encouraging employees to participate in its green vision offering prizes for those who are able to identify and propose initiatives that help improve the corporation’s efficiency.

Concrete Action 1 – Environmental Charter
In 2013 we have taken the proactive step of announcing our environmental charter which may be found in our first CSR & Sustainability Report Page 22 http://www.etisalat.com/en/system/docs/reports/Etisalat-CSR-Sustainability-Report-2012_lowres.pdf.

Etisalat Group has introduced this policy and presented it to teams from Afghanistan, Benin, Niger, Nigeria, Togo, Sri Lanka and UAE as well as its satellite service provider, Thuraya, at its annual Etisalat Social Investment Summit in Dubai in 2013.

The report has also been shared with key stakeholders participating in an IIR Middle East organised conference – the CSR Summit on May 21-23.

Concrete Action 2 – Energy Star
In January 2013 Etisalat signed a Global Framework Agreement with Pacific Controls to offer facility management services across Etisalat’s footprint.
Energy Star is a fully managed Machine-to-Machine (M2M) Solution aimed at reducing the carbon footprint of companies in the Middle East, Asia and Africa.
It was launched first in the UAE, given the UAE’s electricity and power demands, and is expected to double by 2015. The United Nations Environment Programme has assessed that buildings are responsible for 60% of energy consumption.
With this in mind, Etisalat has partnered with Pacific Controls to engage and execute managed energy services with existing building owners resulting in an average efficiency saving in terms of reducing electricity consumption by a minimum of 15%, and in some cases by as much as 25%.
There are currently 34 facilities across the UAE actively participating in this programme, constituting an overall built-up space in excess of 7 million sq. ft.
Targets for 2013-14
• Group-wide employee engagement competition based on Go Green to encourage improved behaviour and identify areas of improvement
• Group-wide efficiency competition to encourage innovations in network management

The information contained in this report is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate, complete and timely information, we do not no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future.
All rights reserved.

Etisalat’s approach to corporate governance aims to achieve superior and sustainable financial performance and long term prosperity while meeting stakeholder’s expectations of sound corporate governance. As an entity with both government and public shareholding interests, the Board of Directors of Etisalat is particularly conscious of the need for transparency and the establishment of a tone within the corporation for ethical and compliant business.

Etisalat is committed to achieving a corporate governance framework that is appropriate to Etisalat’s status as an internationally diverse group and one of the largest publically traded corporations in the United Arab Emirates.

We aim to be direct and transparent about our views, and base our opinions on evidence. All engagement with governments and regulators is subject to our Code of Conduct.

Concrete Action 1 – Publishing Corporate Governance Framework
Etisalat’s corporate governance framework and associated practices for 2012 were reported to the Abu Dhabi Securities Exchange (ADX) in the form of a Corporate Governance Report, as required by MR518. A copy of the latest report can be found on our Web site (http://www.etisalat.com/html/corporate-governance.html).
Concrete Action 2 – Publishing Public Policy Guidelines
In 2013 we have taken the proactive step of announcing our public policy charter which may be found in our first CSR & Sustainability Report Page 71 http://www.etisalat.com/en/system/docs/reports/Etisalat-CSR-Sustainability-Report-2012_lowres.pdf.

Etisalat Group has introduced this policy and presented it to teams from Afghanistan, Benin, Niger, Nigeria, Togo, Sri Lanka and UAE as well as its satellite service provider, Thuraya, at its annual Etisalat Social Investment Summit in Dubai in 2013.

The report has also been shared with key stakeholders participating in an IIR Middle East organised conference – the CSR Summit on May 21-23.

Targets for 2013-14
• Country risk analysis to be conducted for major markets

The information contained in this report is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate, complete and timely information, we do not no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future.
All rights reserved.