Sustainability  Strategy  Analysis  
Rodrigo  Zarate  Arellano  
Student  Number  43115657  

T I M S 7 3 1 7   –   C o r p o r a t e   S u s t a i n a b i l i t y  
  
Rodrigo  Zárate  SN:43115657  

INTRODUCTION  
 

The  following  report  analysis  the  Sustainability  strategy  of  Telstra  on  the  scope  
of  the  Sustainability  Phase  Model  (Dunphy,  Griffiths,  &  Benn,  2003).  For  that,  official  
company  information  is  presented  and  contrasted  with  academic  and  industry  reports.  
The  result  of  such  comparison  will  lead  to  the  positioning  of  the  company  in  one  of  the  
stages   described   in   the   model,   stressing   on   relevant   practices   and   deviations   from  
what  is  expected  in  such  stage  of  sustainability  achievement.  Finally,  in  the  conclusion  
section,  general  recommendations  will  be  posed  for  the  evolution  of  the  company  to  a  
better  stage  on  the  model.  

1.  COMPANY  OVERVIEW  
 

1.1  TELSTRA  
 

Telstra  is  the  incumbent  telecommunication  operator  in  Australia,  continuation  of  
the   state   owned   company   (IBISWorld,   2012),   whose   origins   are   in   the   Postmaster  
General   Department,   established   in   1901   by   the   Commonwealth   Government  
(Telstra,   2013).   In   1975,   the   postal   and   telecommunication   administration   were  
separated   on   behalf   of   the   Telecommunications   Act   1975.   In   1990,   The   Australian  
Telecommunication   Commission   was   renamed   to   Australia   Telecommunications  
Corporation,  in  both  cases  trading  as  Telecom  Australia  (Telstra,  2013).  By  1995,  the  
trading   name   Telecom   is   changed   to   Telstra,   for   both   domestic   and   overseas  
operations.   The   company   operated   as   a   public   limited   liability   company   since   1991  
(Telstra,  2013).  

In   1997,   the   Federal   Government   begins   a   process   of   liberalisation   and   full  

competition  in  this  industry.  Telstra  is  privatised  in  3  stages  (know  as  T1,  T2  and  T3),  
from  which  the  last  one  occurred  in  2006  (Telstra,  2013).  

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1.2  THE  TELECOMMUNICATIONS  MARKET  IN  AUSTRALIA  

 

The  market  for  Telecommunication  services  in  Australia  has  revenue  of  $39.7bn  
for   the   period   2012-­2013.   While   this   measure   reflects   a   healthy   industry,   the   growth  
ratio  of  the  last  5  years  of  -­1.9%,  and  the  projections  for  the  next  5  years  period  are  
not  much  better  (IBISWorld,  2012).  

In   this   context,   Telstra   posses   a   share   of   40.4%   of   the   Australian   market,  

holding  a  leading  position  against  the  major  followers,  Optus  (16.1%)  and  Vodafone-­
Hutchinson   (10.1%).   Telstra’s   leadership   is   based   on   the   economies   of   scope   that  
allows   it   to   deliver   price-­competitive   services.   Also,   since   its   previous   monopoly,   the  
ownership  of  a  vast  fixed  network  is  the  base  for  economies  of  scale  that  allows  it  to  
maximize  its  margins.  Nevertheless,  the  mobile  substitution  trend  in  the  industry  has  
created   a   reduction   in   the   financial   performance   of   the   company   in   the   last   4   fiscal  
periods.   This   is   extremely   critical   considering   that   Telstra   is   the   less   dominant  
competitor   in   the   mobile   segment,   which   is   the   main   driver   for   revenues   (IBISWorld,  
2012).  

The   telecommunication   industry   in   the   world   in   general   is   very   competitive  

(when  liberalization  and  privatization  has  been  applied),  which  makes  the  providers  to  
offer   new   and   better   services   in   regular   basis.   This   produces   a   high   rate   of  
technological  change.  This,  along  with  high  requirements  for  infrastructure,  makes  this  
industry  highly  capital  demanding  (IBISWorld,  2012).  

1.3  BUSINESS  STRATEGY  

 

According  to  Telstra  2012  Annual  Report,  the  company  strategy  is  based  on  the  
concept   of   benefit   advantage   (Wilkinson,   2005).   Among   their   strategic   objective,   the  
mayor  interest  lays  on  the  customer  satisfaction  through  the  delivery  of  high  bundled  
service   level,   integrated   online-­based   business   service.   With   all   this,   Telstra   aims   to  
offer  the  best  service  level  in  the  industry  and  to  increase  its  subscriber  base  (Telstra,  
2012).    

Along  with  the  above,  Telstra  is  diversifying  its  business  by  the  addition  of  new  
businesses   to   its   portfolio   (development   of   network   applications   and   services   and  
machine-­to-­machine   applications),   and   on   the   other   hand,   the   internationalisation   of  
its   business,   since   Telstra   operates   in   New   Zealand   also   and   owns   CSL   operator   in  

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Hong  Kong  (Telstra,  2012).  

Since   its   privatisation,   Telstra’s   business   has   been   based   in   its   large-­scale  
infrastructure,   deployed   during   its   monopoly   past   and   further   upgrade   and  
modernization.   This   has   provided   a   sustainable   scale   advantage   and   continuous  
profitability.  

Another  hit  in  the  strategy  was  driven  by  the  plan  of  the  Federal  Government  to  
deploy  the  National  Broadband  Network.  Based  on  the  agreement  signed  by  Telstra,  
the   company   will   build   an   important   part   of   the   infrastructure   of   the   project   and   shall  
migrate  its  customers  from  cooper  wired  services  to  the  new  high-­speed  fibre  service  
(IBISWorld,  2012).  In  this  new  model,  the  fibre  infrastructure  will  be  used  as  a  means  
in   which   any   operator   could   deliver   service   to   the   final   customers.   This   will   impact  
directly  the  focus  of  Telstra,  changing  from  being  an  infrastructure  owner  to  a  service-­
oriented  company  (The  Australian,  2011).  

2.  TELSTRA’S  CORPORATE  SUSTAINABILITY  STRATEGY  

 

Telstra’s  strategy  regarding  sustainability  can  be  found  in  its  annual  report.  The  
declared   goal   of   conducting   their   business   responsibly   is   supported   within   the  
organization  with  the  existence  of  Sustainability  Council,  chaired  by  the  CEO  and  that  
comprises   the   Executive   Leadership   team.   This   Council   monitors   and   controls   the  
sustainability  strategy  and  performance  of  the  company.  The  organizational  structure  
of   the   company   considers   a   Corporate   Sustainability   Office   since   2011,   which   is  
managed  by  the  CSO.  (Telstra,  2012)  

Telstra’s  Sustainable  performance  includes  the  following  focuses.  

2.1  HUMAN  SUSTAINABILITY:  

 
-­   Putting   customers   at   centre   to   promote   economic   and   social   inclusion.   This  
considers   privacy   and   information   safety,   skill   development,   and   tools   to  
incorporate   actions   to   enhance   the   experience   and   usability   of   services   by  
indigenous  communities  and  customers  with  disabilities.  
-­   Good  employment  practices,  promoting  cultural  engagement  of  customers  with  
corporate  culture,  initiatives  for  safety  and  wellbeing  of  the  employees,  promote  
diversity  and  volunteering.  

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2.2  ENVIRONMENTAL  SUSTAINABILITY:  

 

-­   Reduce   environmental   impact,   through   initiatives   like   carbon   emission  

reduction;;   help   customers   to   reduce   their   emissions   with   the   use   of   ICT  
(information   and   communication   technologies),   recycling   of   elements   specific  
to  the  business  (directories,  e-­waste,  among  others).  (Telstra,  2012)  

The  Sustainability  report  2012,  describes  in  more  details  the  activities  regarding  
Environmental   Sustainability.   Telstra   basically   has   dual   approach,   on   one   hand  
measuring   and   reducing   the   carbon   emissions   and   the   energy   use,   and   in   the   other  
hand,   cultivating   a   transparent   and   accountable   approach   with   its   stakeholders,  
adhering   to   industry   reports   frameworks,   providing   assurance   to   its   stakeholders  
though   third   party   organizations   such   as   Banarra   and   Ernst   &   Young,   and   adhering  
voluntarily  to  third  party  sustainability  initiatives  (Telstra,  2012).  

2.3  SCOPE  OF  THE  ANALYSIS  

 

This  report  will  pay  particular  attention  to  analysing  the  initiatives  related  to  the  
energy   consumption   and   the   emission   reduction   initiatives.   Telstra   declares   in   its  
Sustainability  Report  2012  that  energy  used  in  its  network  represents  the  85%  of  the  
total   energy   consumption   of   the   company.   This   is   mainly   to   keep   the   equipment  
running   and   to   maintain   a   proper   temperature   and   humidity   in   the   equipment   room  
(Telstra,  2012).  

Telstra  then,  defines  its  commitment  to  minimize  the  environmental  impact  of  its  
operations,  with  a  preventive  approach.  For  that,  the  company  claims  to  be  compliant  
with  ISO14001  standards  for  environmental  managements  and  procedures,  including  
its  network  construction  system.  Telstra’s  operations  are  performed,  according  to  the  
company,   following   the   Australian   and   international   norms   and   regulations,   stressing  
that  the  company  has  not  been  fined  or  prosecuted  during  the  reported  period.  

The   specific   initiatives   regarding   energy   use   and   carbon   emissions   are   the  
following,  as  declared  in  the  company’s  Sustainability  Report:  

 
-­   The   establishment   of   procedures   for   energy   use   and   emission   measurement,  

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analysis  and  reporting.  

-­   The   incorporation   of   energy   efficiency   in   the   design   and   construction   of   the  
company’s  facilities.  
-­   Collaborate   with   knowledge   entities   in   the   industry   to   develop   innovative  
renewable   energy   solutions,   as   well   as   with   the   technology   providers   to  
improve  the  energy  efficiency  of  the  equipment.  
-­   Incorporate   carbon   reduction   measures   in   the   transport   systems   that   support  
Telstra’s  operations.  
-­   Encouraging  the  staff  to  participate  in  the  initiatives  mentioned  above.  
 

Nevertheless,  despite  these  policies,  carbon  emissions  and  energy  consumption  

have   been   increased   in   the   reported   year   (2.4%   and   1%   respectively).   According   to  
the  company,  the  heavier  load  in  data  traffic  has  driven  this  increase  on  the  network  
(more   than   50%   in   the   12   month   period).   The   company   tried   to   compare   the   carbon  
emission   increment   with   the   higher   demand   of   the   network,   calculating   the   ratio   of  
tonnes   of   CO2   equivalent   emissions   to   the   load   of   the   network   in   terabytes  
(tCO2e/TB).  According  to  this  intensity  index,  the  company  would  have  been  actually  
reduced  its  emission,  meaning  that  it  made  its  network  more  efficient.  The  reduction  is  
claimed  to  be  over  36%.  

The  company  declared  to  have  invested  9  million  dollars  in  energy  consumption  
reduction   initiatives   (involving   lighting   control,   fresh   air   and   retrofitted   air   conditioner  
systems),  with  which  it  is  expecting  to  reduce  more  than  25  thousand  tonnes  of  CO2  
equivalent   based   on   the   intensity   index   they   refer   to.   This   intensity   index   was   firstly  
introduced   by   the   American   telecommunications   operator   Verizon;;   the   company   had  
set  the  same  yearly  target  to  reduce  the  equivalent  emissions:  15%  (Verizon  ,  2011).  

Two   comments   can   be   made   regarding   this   measurement   procedure.   First,  

while   the   index   reflects   in   an   effective   way   the   efficiency   of   the   systems   (carbon  
emissions  associated  to  productivity),  it  can  mask  the  real  amount  of  emissions  of  the  
company.   Nevertheless,   Telstra   includes   in   its   Sustainability   Report   the   total   CO2  
equivalent   (tCO2e)   of   its   operations,   but   the   problem   that   the   target   reduction   is  
expressed   in   tCO2e/TB   remains.   Secondly,   it   is   interesting   to   check   whether   this  
measurement   consider   the   consumption   of   the   equipment   installed   in   the   customer  
premises  (modems  and  routers,  receivers,  charging  devices).  

In  this  regard,  the  proposal  for  the  establishment  of  an  energy  rating  system  for  

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telecommunications  published  in  the  Telecommunications  Journal  of  Australia  (Chan,  

Wong,  Nirmalathas,  Gygax,  Leckie,  &  Kilper,  2012)  draws  some  interesting  rationale.  

First,   the   efforts   of   Telstra   to   adopt   energy-­efficiency   measurements   is  

highlighted   in   the   document,   and   claimed   to   promote   transparency   and   differentiate  
the   offer   to   the   customers.   Nevertheless,   the   paper   recognizes   that   the   practice   of  
increasing   the   energy   efficiency   of   the   systems   while   the   usage   of   those   systems  
increases   as   well,   could   not   be   a   sustainable   practice.   Green   strategies   should  
measure    both  the  energy  efficiency  and  the  energy  consumption  in  a  given  period  of  
time  in  order  to  assess  its  effectiveness.  

Since  the  demand  for  contents  and  data  throughput  will  continue  increasing  over  
time,  carbon  emissions  and  energy  consumption  should  consider  a  time  span  where  
also  improvement  metrics  are  applied  to  finally  find  out  whether  the  energy-­efficiency  
is  consistent  with  a  sustainable  strategy.  In  this  sense,  the  target  reduction  of  15%  in  
the  carbon  emission  intensity  index  is  not  enough  to  realize  whether  the  company  is,  
at  the  end  of  the  day,  reducing  its  contribution  to  green  house  gases  (GHG).  

Moreover,  the  lack  of  a  standardized  measurement  and  reporting  framework  for  
telecommunication  services  results  in  a  myriad  of  different  index  based,  on  one  hand,  
on   the   particular   type   of   service   each   company   is   providing,   and   on   the   other,   to  
different   focus   in   the   environmental   impact   (energy   consumption   or   carbon  
emissions),   all   of   which   present   a   big   challenge   for   governments,   customers   and  
companies   themselves   to   assess   the   offer   and   behaviour   of   the   different   service  
providers.   A   Sample   of   the   indexes   being   implemented   by   the   main  
telecommunication   companies   in   the   world   is   depicted   in   the   following   table   to  
illustrate  this  fact.  

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Table  1:    Energy  efficiency  metrics  and  planned  improvements  of  major  telecom  companies  

Telecom Region Energy efficiency metric Planned improvement

Company

AT&T North America Energy consumption (kWh) / terabyte of 25% reduction by 2019
data (TB) compared to 2009

Verizon North America Carbon emissions (tons) / terabyte of 50% reduction by 2020
data (TB) compared to 2009

Telecom Europe Bits transmitted (bit) / energy N/A

Italia consumption (joule)

British Europe Carbon emissions (tonnes) / unit of 80% reduction by 2020

Telecom contribution to GDP compared to 1997

Orange Europe Carbon emissions (tonnes) & energy 20% reduction for
TM consumption (kWh) CO2e and 15%
reduction for kWh by
2020 compared to 2006
China Asia/Oceania Energy consumption (kWh) / unit of 20% reduction by 2012
Mobile telecommunications traffic (MB) compared to 2008

Telstra Asia/Oceania Carbon emissions (tonnes) / terabyte of N/A

data (TB)

Optus Asia/Oceania Carbon emissions (tonnes) / revenue ($) 20% reduction by 2014
compared to 2007

(Source:  Chan,  Wong,  Nirmalathas,  Gygax,  Leckie,  &  Kilper,  2012)  

Secondly,   the   work   of   Chan,   Wong,   Nirmalathas,   Gygax,   Leckie,   &   Kilper   also  
stresses  the  importance  of  considering  what  the  GHG  Protocol  Initiative  2012  defines  
as   two   phases   when   metering   GHG   emissions   of   a   ICT   company:   the   use-­phase  
emissions  and  the  embodied  emissions  (Greenhouse   Gas   Protocol,   2012).   The  use-­
phase  emissions  are  referred  to  those  caused  by  the  energy  consumption  associated  
with  the  use    of  the  equipment  (in  the  network,  the  customer  premises  and  labour  and  
non-­ICT   infrastructure   to   support   the   service),   while   the   embodied   emissions   are  
those  related  with  the  material  acquisition  and  pre-­processing,  production,  distribution,  
commissioning   and   decommissioning   of   network   equipment.   According   to   the   paper  
from  Chan,  Wong,  Nirmalathas,  Gygax,  Leckie,  &  Kilper,  the  use-­phase  emissions  are  
the  main  component  of  the  GHG  contribution  from  a  telecom  operator,  since  the  long  
life   spam   of   the   devices   (it   can   count   between   60%   to   90%   of   the   total   emissions  
measurement).   This   concept   can   be   matched   with   the   guidelines   of   the   World  
Resources   Institute,   very   well   summarized   in   the   paper   “Improving   Methods   to  
Estimate   Energy   and   Carbon   Footprints   of   Global   Telecommunications”   (Sanchez,  

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Matthews,  &  Weber,  2010).  In  this  reference  frame,  use-­phase  emissions  are  included  
in  Scope  3  emissions  (scope  1  emissions  as  those  produced  directly  by  the  company  
operations   and   assets;;   scope   2   as   those   related   with   the   purchase   of   energy,   and  
scope  3  as  the  emissions  not  under  control  of  the  company,  such  as  supply  chain,  use  
of  the  services,  product  disposal).    

The   carbon   emission   performance   table   (Table   2)   included   in   Telstra’s  

Sustainability   Report   2013   clearly   classifies   the   company   emissions   into   scope   1  
emissions,   scope   2   emissions,   and   scope   3   emissions.   Hence,   the   use-­phase  
emissions  are  being  considered  in  the  measurement,  which  means  that  the  company  
is   considering   the   emissions   related   with   customer’s   premises   equipment   and   in  
general,  the  full  life  cycle  of  carbon  emissions.  

               Table  2:  Telstra  's  carbon  emissions  by  year  ended  30  June  

  2011/12   2010/11   2009/10   %  change  

2010/11-­2011/12  
Scope  1  emissions  (tCO2e)   53,587   55,083   57,243   -­2.7%  
Scope  2  emissions  (tCO2e)   1,374,617   1,359,076   1,382,642   1.1%  
Scope  3  emissions  (tCO2e)   248,720   245,554   247,892   1.3%  
Total   emissions   [Scope   1,   2   &3]   1,676,925   1,659,714   1,687,777   1.0%  
(tCO2e)  
Terabytes  (TB)   1,353,678   858,7     57.6%  
Emissions  intensity  (tCO2e/TB)   1.24   1.93     -­35.8%  
Network   related   emissions   85%   86%     -­0,01  
(Percentage  of  total  emissions)  
(Source:  Telstra  Sustainability  Report)  

3.  SUSTAINABILITY  ANALYSIS  
 

For   the   effects   of   this   report,   the   Sustainability   phase   model   will   be   used,  
according   to   how   it   is   described   by   in   “Organizational   Change   for   Corporate  
Sustainability”   (Dunphy,   Griffiths,   &   Benn,   2003).   The   purpose   of   this   analysis   is   to  
identify  the  motivations  for  the  company  involvement  in  sustainability  initiatives,  being  
able  to  classify  the  strategy  of  Telstra  regarding  sustainability  according  to  the  stages  
of   the   model,   analyse   the   fit   of   the   company   initiatives   with   its   current   sustainability  
position,  and  elaborate  some  recommendation  for  the  company  to  improve  its  position  
according   to   the   model.   As   stated   previously,   and   since   the   Telstra’s   impact   of   its  
surroundings  is  so  vast  (as  described  in  section  2),  the  sustainability  analysis  will  be  

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focused   in   the   energy   consumption   of   the   network   and   how   the   company   faces   this  
and  how  it  work  to  reduce  it  along  with  the  carbon  emissions  produced.  

The   drivers   for   organizational   change   towards   a   more   sustainable   corporation  

can  be  found  both  inside  and  outside  the  organization.  The  external  forces  that  drivers  
a   company   to   a   sustainability   approach   are   typically   the   government,   the   market  
(competitors   and   consumers),   and   diverse   groups   of   interest   (NGO,   the   community)  
among   others,   while   internal   pressures,   particularly   from   corporate   leaders   can   also  
make   the   company   consider   a   sustainability   strategy   (Dunphy,   Griffiths,   &   Benn,  
2003).  

In   the   case   of   IT   and   telecommunication   companies,   the   environmental   impact  

of   their   operations   (data   centres,   network   infrastructure   and   support   systems)   was  
largely   disregarded   (Minoli,   2010).   But   in   fact,   data   centres   is   infrastructure   of   high  
energy   consumption   (Minoli,   2010);;   IT   industry   is   responsible   for   2%   of   CO2  
emissions  globally,  and  furthermore  all  stages  of  the  IT  supply  chain  (manufacturing,  
operation,   disposal)   can   produce   environmental   damage,   not   considering   that   the   IT  
business  often  provide  service  not  only  to  final  consumers,  but  other  industries  (Molla  
&  Cooper,  2009)  which  can  be  whether  contributing  to  the  environmental  pollution  or  
concern   about   its   productive   carbon   footprint.   In   this   scenario,   socio-­political   forces  
are  pressing  IT  and  telecom  industry  towards  an  environmental  concern  and  to  create  
a  green  IT  conscience  (Minoli,  2010).  Social  and  citizen  awareness  of  environmental  
issues   is   also   pushing   customers   to   audit   and   request   their   service   and   product  
providers  more  proactivity  towards  sustainability  efforts,  and  they  can  act  through  their  
purchase  power  (Chan,  Wong,  Nirmalathas,  Gygax,  Leckie,  &  Kilper,  2012)  in  a  sector  
that  has  high  levels  of  competence  (IBISWorld,  2012).  

Internally,  the  company  declares  in  its  Annual  Report  2012  (Telstra,  2012),  that  
the   sustainability   approach   is   based   on   the   value   creation   and   risk   minimization   to  
create   a   long-­term   approach   and   to   improve   people’s   life   and   work.   This   basically  
means   that   Telstra   is   embracing   a   sustainable   approach,   to   improve   their   business  
performance  and  increase  their  value  proposal  to  the  customers  (Frederick  &  Kuratko,  
2012)   on   one   hand,   and   in   the   other,   to   engage   the   customers   and   develop   positive  
associations   and   a   long-­term   relationship,   which   is   the   peak   stage   of   brand  
development  (Keller,  2013).  

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3.1  STAGES  OF  THE  SUSTAINABILITY  PHASE  MODEL  

 

According   to   the   model   developed   by   Dunphy,   Griffiths   &   Benn   (2003),  

companies   face   sustainability   through   6   evolutionary   stages,   depending   on   the  
awareness,   responsiveness   and   initiatives   with   which   it   relates   with   its   social   and  
natural  environment.  Described  briefly,  these  6  stages  are:  

Rejection:   Merely   instrumental   perspective   of   company   resources,   specially   human  

resources,   and   the   national   environment.   The   company   is   mainly   focusing   on   the  
exploitation  of  those  resources.  Government  and  communities  are  seen  as  antagonist  
players  from  the  company  point  of  view.  

Non-­responsiveness:  The  financial  focus  and  the  technological  productivity  are  more  
relevant  than  the  counter  effects  on  stakeholders.  The  point  of  view  of  the  company  is  
a   lack   of   care   or   understanding   of   the   environmental   issues.   The   environmental  
resources  are  seen  as  a  given.  

Compliance:   Risk   reduction   and   legal   issues   are   the   main   drivers   to   commit   into  
some   sustainable   procedures   to   comply   with   the   minimum   legal   and   community  
standards.    

Efficiency:  There  is  a  growing  awareness  of  the  cost  and  productivity  advantages  of  
sustainability   policies   for   the   business;;   human   resources   and   environmental   good  
practices  are  embraced  in  this  context.  

Strategic   proactivity:   Considers   sustainability   as   an   important   part   of   the   firm’s  

business   strategy,   by   means   of   the   development   of   a   competitive   advantage.   The  
company   position   itself   as   a   leader   in   sustainability   practices   (for   both   human   and  
natural   environments),   with   a   high   component   of   innovation.   The   focus   is   still   in   the  
long-­term  profitability.  

The  sustaining  corporation:  Reinterprets  the  nature  of  the  corporation  to  an  integral  
self-­renewing  element  of  the  whole  society  and  in  its  ecological  context.    

In   the   case   of   Telstra,   it   can   be   seen   from   what   was   described   in   its  
sustainability   strategy   that   the   company   is   positioning   itself   in   a   Strategic   proactivity  
stage.  A  deeper  analysis  of  the  policies  and  initiatives  can  confirm  this  situation:  

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3.2  HUMAN  SUSTAINABILITY:  

 

Telstra   depicts   itself   as   a   company   concerned   about   customers;;   declares  

interest   in   the   development   of   the   communities   and   to   extend   its   coverage   to   all  
segments   in   society   to   overcome   the   differences   in   access   to   ICT.   Customers   are  
named   to   be   on   the   centre   of   the   interest   of   the   company;;   it   also   considers   special  
initiatives   for   disadvantaged   citizens   and   indigenous   communities.   Other   interesting  
focuses  of  Telstra  are  the  protection  of  the  rights  and  safety  of  the  users  regarding  the  
telecommunications   services.   Telstra   positions   itself   as   a   good   employer   as   well,  
involving   and   engaging   its   staff   with   the   company   culture,   promoting   the   safety   and  
wellbeing  of  the  workers  and  defining  very  clear  gender  diversity  policies.  Finally,  the  
company   has   set   up   a   volunteering   promotion   program,   to   engage   the   staff   with   the  
communities  and  also  has  a  budget  item  to  support  charity.    

In  this  concern,  it  is  possible  to  confirm  the  commitment  of  the  company  with  the  
objectives  described  in  the  annual  report  for  these  initiatives.  Nevertheless,  a  lack  of  
involvement   of   the   employees   and   the   customers   can   be   observed   in   the   core  
business   processes   of   the   company.   The   Human   dimension   of   the   sustainability  
strategy  is  mainly  driven  by  the  management  and  applied  as  an  accessory  to  the  main  
business  rather  than  being  used  to  redefine  the  core  activities  of  the  company.  Among  
them,   the   most   important   missing   point   could   be   the   encouragement   of   bottom-­up  
innovation,  promoting  the  participation  of  the  employees  in  the  generation  of  new  and  
more  sustainable  businesses.  

3.3  ENVIRONMENTAL  SUSTAINABILITY:  

 

It   can   be   found   that   initiatives   described   in   the   sustainability   report   of   the  

company  are  well  funded  and  well  regarded  among  the  academic  community.  Firstly,  
the   company   has   developed   research   efforts   related   to   the   development   of   a   low-­
carbon   economy,   presenting   its   results   to   the   industry   and   proposing   methods   and  
targets   to   reduce   the   carbon   footprint   of   the   industry   in   a   study   called   “A    High-­  
Bandwidth,  Low-­Carbon  Future:  Telecommunications-­based  Opportunities  to  Reduce  
Greenhouse   Gas   Emissions.”   This   initiative   has   been   evaluated   and   highlighted   by  
Molla  and  Cooper  (2009)  because  of  the  high  awareness  and  environmental  concern  
for   the   role   of   the   IT   industry   in   the   environmental   landscape,   under   the   concept   of  
“Green  IT  attitude”.  

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Molla   and   Cooper   (2009)   have   also   highlighted   other   initiatives   of   Telstra   such  
has   the   so   called   “Green   IT   policies”   (research   to   improve   government,   enterprises  
and   households   emissions   levels   through   the   use   of   IT;;   purchase   procedures  
including  energy  efficiency  and  reduced  emission  products,  equipment  and  services),  
“Green   IT   Technologies”   (enable   IT   solutions   such   as   video   conferencing   to   avoid  
emissions   produced   by   transportation   between   some   of   its   offices;;   recycling  
encouragement   and   the   use   of   renewable   energy   systems),   and   “Green   IT  
governance”   (the   appointment   of   proper   organizational   responsibilities   to   implement  
the  sustainability  agenda  at  senior  management  levels).    

Finally,   the   energy   consumption   initiatives   on   its   network   is   seems   to   be  

targeted  in  the  right  direction;;  as  commented  in  section  3,  while  the  measurement  of  
the  increased  energy  efficiency  of  the  equipment  compared  with  the  productivity  of  the  
systems  (intensity  index)  is  not  enough  to  achieve  a  sustainable  approach,  the  use  of  
a  target  over  time  for  the  reduction  of  the  emissions  will  make  possible  to  assess  the  
performance  of  the  company  in  the  long  run  in  terms  of  carbon  emission  reduction.  

4.  CONCLUSION  
 

According   to   the   information   available,   both   from   the   company   and   from   the  
knowledge   institutions   involved   in   the   analysis   of   sustainability   in   IT   and   telecom  
industry,   it   would   be   correct   to   position   Telstra   in   the   Strategic   proactivity   phase,  
regarding   both   the   human   impact   and   the   environmental   impact.   Even   though   the  
initiatives   are   well   designed,   properly   measured   and   the   targets   being   reached,   still  
the   company   haven`t   redesign   its   core   business   process   to   adopt   the   sustainability  
principles  as  the  drivers  for  the  growth  and  success  of  the  firm.  It  can  be  seen  that  the  
developing   of   feelings   and   associations   regarding   environmental   and   social  
sustainability  towards  the  brand  is  still  the  main  objective,  trying  to  engage  customers  
and  the  industry  with  a  sustainable  personality.  

In  order  to  Telstra  become  a  Sustaining  Corporation,  innovation  will  have  to  be  
brought  to  the  centre  of  the  company  culture.  On  one  hand,  the  company  should  set  
up   a   technology   R&D   area   to   actively   promote   the   innovation   of   network   equipment,  
pushing  technological  change  and  defining  new  standards  to  the  industry.  This  is  what  

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the  Japanese  operator  NTT  is  doing  since  1948,  which  allows  it  to  actively  define  the  
technologies  and  standards  that  better  suits  its  business  (NTT  Corporation,  2013).  

One  interesting  focus  that  the  company  is  exploiting  at  the  moment  is  the  use  of  
IT  as  a  driver  for  carbon  emission  reduction.  This  should  be  the  main  service  focus  in  
the   future,   in   order   to   develop   the   whole   business   strategy   of   the   company   based   in  
this  type  of  service.  This  would  be  a  main  source  of  competitive  advantage  at  the  time  
it  can  change  the  company  culture.  

Finally,  as  stated  before,  the  incorporation  of  the  staff  and  the  community  in  the  
innovation   and   decision   processes   can   bring   long   term   benefits   for   Telstra,   by  
focusing   the   business   in   the   direction   of   the   customer’s   needs,   at   the   time   that   the  
staff  becomes  more  empowered  and  responsible  for  the  direction  of  the  firm.  This  can  
be   achieved   by   the   establishment   of   a   shared   internal   governance;;   processes   that  
foster  employee  innovation  and  participation,  and  the  attraction  of  talent  that  share  the  
company   values.   In   term   of   the   involvement   of   the   customers,   the   orientation   of   the  
sales   force   and   the   service   desk   employees   is   critical   to   collect   the   feedback,  
perceptions  and  needs  from  the  clients,  allowing  them  to  shape  the  company  offer.  

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