Teracom's chief executive (CEO) expresses and confirms our continued support of the ten principles of the United Nations Global Compact on human rights, labour, environment and anti-corruption within our integrated annual and sustainability report.

The report for 2018 can be found at www.teracom.se/ar2018/files/pdf/Teracom_AR2018.pdf

The risk of contributing to violation of Human Rights is greatest within the areas of: building of new infrastructure, purchases and investments and in relation to the company's own employees and contracted contractors. In addition to these areas, Teracom intends to go into depth in 2019 to identify and address the risks of violations of the personal integrity associated with the company's existing and future assignments.

Governing policys are: Ethics policy, Information Security Policy, Work Environment Policy, Diversity Policy, Security Policy, Code of conduct for employees, Code of conduct for suppliers, Finance Policy, Investment Policy.

Teracom secure access to vital communication by providing a robust infrastructure, available also at security-sensitive locations. Teracom contributes to a secure society by providing a robust infrastructure that ensures access to vital communication. We have long experience as responsible for critical communication functions and networks with uniquely high coverage and accessibility - nationwide networks that promote democracy and inclusion.

Teracom respects human rights and works to ensure that these are not violated in the company's value chain. In markets where Teracom operates, human rights are handled by existing legislation. Teracom has integrated the work with respect to human in the ongoing business, focusing on the areas assessed to have the highest risk of contributing to violations: new infrastructure, in connection with purchases and investments and in relation to the company's own employees and contracted contractors.

During 2018, no special evaluation of the organization with regard to human rights has been carried out.

Measured by KPIs:
* Nationwide network, population coverage in percent
* Availability Customer Rachel (Distributor of vital information) in percent
* Introduction of information security management system in percent
* GRI 412-1 Operations that have been subject to human rights reviews or impact assessments

Teracom is characterized by a value-driven employeeship, committed workforce and a security-conscious corporate culture. We want an inclusive and stimulating work environment where the employee's own drive, initiative and responsibility are encouraged and rewarded. With well-established leadership principles, we're achieving a clear and goal-oriented organization.

Teracom's diversity goal aims towards reflecting the diversity of society at large, wich means that the proportion of women and people with non-nordic background need to increase. We pay particular attention to the fact that at least 40 per cent of each sex should be represented among both managers and employees in the long term. In 2018, 25 per cent of the management team, 31 per cent of managers and 18 per cent of all employees in the Swedish operations were women.

Governed by policys: Ethics policy, Information Security Policy, Work Environment Policy, Diversity Policy, Security Policy, Code of conduct for employees, Code of conduct for suppliers, Finance Policy, Investment Policy.

Teracom Group offers a good and safe working environment, a working environment committee meets recurrently and propose needed measures and to which all environmental and work-related incidents are reported. The committee consists of managers, union representatives, safety representatives and the work environment manager at Teracom AB. Examples of efforts to ensure a good working environment are: training in work environment and risk management, health checks and medical examination for persons who perform field service on high towers. The Group's wellness work is based on a personal wellness subsidy. In the annual employee interviews, well-being is followed up and the experience of the psycho-social work environment is measured in the employee survey.

Measured by KPIs:
Results from annual employee survey
* Leadership index and Commitment index
* GRI 405-1 Diversity of management and employees
* GRI 102-8 Information on employees

Teracom develops innovative and climate-adapted products and services for communication, thereby actively contributing to the owner's goals in Sweden for a net zero emission of greenhouse gases.The Group's main environmental impact consists of greenhouse gas emissions. The overall environmental goal is therefore to reduce climate impact through investments in innovation, energy efficiency and transition to renewable energy.

Governed by policys: Ethics policy, Information Security Policy, Work Environment Policy, Diversity Policy, Security Policy, Code of conduct for employees, Code of conduct for suppliers, Finance Policy, Investment Policy.

Teracom Group's environmental work is regulated in the ethics policy which stipulates compliance with statutory requirements and customer requirements, the pursuit of resource efficiency and the application of the precautionary principle, especially in connection with purchases and investments. In addition, Teracom has an environmental policy which states, among other things, that constant improvements must be the driving force. All units must draw up goals and action plans with activities to achieve this.

Teracom Group collects environmental data on electricity and fuel consumption, as well as environmental effects of commuting, business travel and freight transport. Reporting and follow-up enables control of efforts to areas with the greatest improvement potential. An overall energy survey has been carried out and a detailed survey is in progress. During 2018 Teracom Group's greenhouse gas emissions amounted to 2,851 tonnes of carbon dioxide equivalents (CO2e) during the year. It corresponds to an increase of 2.5 percent compared to 2017. Field service trips for 2018 are climate compensated by investments in Godawari Solar Rays, solar cell project in India, corresponding to 152 tonnes of carbon dioxide.

Measured by KPIs:
* GRI 302-1 Energy consumption within the organization
* GRI 305-1 Direct (Scope 1) GHG emissions
* GRI 305-2 Energy indirect (Scope 2) GHG emissions
* GRI 305-3 Other indirect (Scope 3) GHG emissions

Corruption has a negative effect on both individuals and society as a whole. This leads to distorted competition and that public confidence in public governance and Teracom decreases, which in the long run, risk damaging both democracy and human rights. Teracom Group has zero tolerance against corruption. The anti-corruption work is based on risk analysis regarding corruption that was implemented in 2015 addressing the entire Group. The risk analysis took into account the country context, service category and industry affiliation and industry practice. Main risk areas were identified as risks related to disqualification, impact related to purchasing processes, risks related to gifts and representation, and risks surrounding the dissemination of secret information.

Governed by policys: Ethics policy, Information Security Policy, Code of conduct for employees, Code of conduct for suppliers, Policy for market presence, Remuneration policy

In order to reduce the risk of corruption, internal procedures and controls are established, for example within the accounting department regarding invoices that come to the company, through certification schemes and by using the grandfather principle in, for example, wage setting and employment. As a result of the risk analysis, Guidelines for Gifts and Representation were taken in 2016 and the Whistle Blower function for anonymous reporting of serious deviations was made more easily accessible through a new external solution.

All employees shall take part in and understand the guidelines on anti-corruption described in the Group's Code of Conduct. Corresponding information is integrated into a digital education in responsible business that is mandatory for all other employees.

No confirmed corruption cases or incidents have been reported during the reporting period 2018.

Measured by KPIs:
* GRI 205-1 Operations assessed for risks related to corruption
* GRI 205-3: Confirmed incidents of corruption and actions taken