Corporate responsibility governance

At the CEO’s proposal, the Board of Directors approves the sustainability strategy incorporated within the corporate strategy, defines the key ESG issues and goals for Swisscom, and subsequently monitors the associated risks. Where necessary, it is also responsible for the policy concerning the supply chain for conflict minerals and for products and services where child labour is suspected. It also decides whether to use national or international rules for the ESG report and approves the corresponding external report.

The Board of Directors approves the revision of the sustainability strategy. It is informed in writing of the progress of the implementation of the sustainability strategy as part of the quarterly report, and orally, as part of the half-year report.

The Board of Directors conducts a thorough examination of important issues through its three standing committees, Finance, Audit & ESG Reporting and Remuneration, and through the ad hoc Nomination Committee.  The Board of Directors has delegated certain sustainability issues to the Audit & ESG Reporting Committee.

The tasks of the Audit & ESG Reporting Committee

The Audit & ESG Reporting Committee handles issues relating to financial management, assurance (risk, internal audit, compliance), data protection, security and external audits. Since 2022, the Committee has also overseen the ESG report (Environmental, Social and Governance). The Committee takes a position on matters falling within the decision-making powers of the Board of Directors and makes the final decision on matters for which it has the necessary authority. Details of the activities and powers of the Board of Directors and the Audit & ESG Reporting Committee in respect of ESG matters are set out in the Organisational Rules and annex “1.2 Audit & ESG Reporting Committee regulations”.

Go to principles

The Audit & ESG Reporting Committee is made up of four independent members (Roland Abt (Chairman), Sandra Lathion-Zweifel, Fritz Zurbrügg (replacement of Renzo Simoni since March 2023) and Michael Rechsteiner). The Committee’s meetings are convened by the chairman or at the request of one of the members as often as business requires but at least once a quarter as well as in December. Meetings generally last between three and six hours. The CEO, CFO, Head of Security & Corporate Affairs, Head of Accounting, Head of Internal Audit and external auditors are always in attendance at the meetings. In 2022, in accordance with the agenda, the Board of Directors invited other members of the Group Executive Board and representatives from Swisscom’s management to attend. The Audit & ESG Reporting Committee is also authorised to invite independent third parties, such as lawyers, accountants and tax experts. During the reporting year, the Committee did not invite any external advisors to any of its meetings.

Information on the main KPIs for the sustainability strategy’s priorities is provided to the Board of Directors each December and to the Audit and ESG Reporting Committee each August by the Director of Group Communications and Responsibility (GCR). 

The following table provides a summary of the Auditing & ESG Reporting Committee’s meetings and circular resolutions in 2023. 

¹ Financial expert
² Left the Board of Directors on 28 March 2023
³ Elected to the Board of Directors on 28 March 2023

The Audit & ESG Reporting Committee is the main point of contact for the Board of Directors on sustainability issues.   

Audit & ESG Reporting Committee’s sustainability goals

The Audit & ESG Reporting Committee of the Board of Directors defines the Key Performance Indicators (KPIs) relating to the central ESG issues. It monitors the concepts defined by the CEO for the implementation of the sustainability strategy and KPIs and evaluates the effectiveness of the defined measures. Furthermore, it ensures due diligence in respect of conflict minerals and child labour. This Committee devises and monitors the internal control system designed to guarantee the reliability of the ESG information and sustainability reports. It decides on the form that the internal and external reporting on key ESG issues should take and is responsible for their validation. It is also responsible for approving the sustainability report. The Audit and ESG Reporting Committee president informs the Board of Directors about the Committee’s meetings during the subsequent meeting of the Board of Directors.

The Board of Directors of Swisscom Ltd has delegated implementation of the Group’s strategy to the CEO. The CEO, who can transfer powers and responsibilities to subordinate units, is responsible for defining the goals and appropriate measures for implementing the sustainability strategy. The CEO is supported in this task by members of the Group Executive Board. The CEO submits the sustainability strategy and key ESG issues to the Board of Directors for approval. The CEO reports back periodically to the Board of Directors or the Audit and ESG Reporting Committee on progress towards achievement of the goals and the effectiveness of the measures. If required, a working group comprising members of the Group Executive Board is convened to deal with specific ESG issues. The CEO therefore deals with issues of corporate ethics in a specific working group. This group is also made up of the Director of Group Communications and Responsibility (GCR) who is responsible for ethics, the Head of Group Human Resources (GHR) and internal and external specialists (see article entitled “Corporate ethics” in the “ESG impact”).

The Group Executive Board has defined the company’s main goals and each division’s partial goals as part of the sustainability strategy. It also analyses the development and implementation of the measures defined at least once every six months. Each November, it adopts the roadmap and the partial goals (indicative values) for the coming financial year.

The members of the Group Executive Board are the GEB Sponsors of the strategic activities of their divisions. Alongside their Division Managers, they are responsible for implementing the sustainability strategy in the respective lines of business and deciding on specific measures. They therefore ensure that the areas of focus of the sustainability strategy are firmly enshrined in the company and are binding.

The Group Executive Board has the following controlling instruments:

• Periodic reporting from the GCR division with main events
• Half-year report containing the principle KPIs relating to the sustainability strategy’s major themes
• Quarterly report on Risk Management and the achievement of ESG goals
• Half-year status report in the divisional management bodies on the status of the segment’s roadmap.
  

The Group Communications & Responsibility (GCR) division is responsible for coordinating the implementation of the Agenda 2030 goals and, by extension, for sustainability at Swisscom. The Sustainability team, which is part of the GCR division, develops the sustainability strategy and coordinates its implementation. To do this, it draws up a Group-wide annual roadmap in collaboration with the divisions (Business Units).

Process

Sustainability criteria are incorporated within product range requests and processes and investment decisions as standard.

Monitoring

The KPIs of the sustainability strategy are consistently incorporated within division goals. The relevance of the sustainability report is also reinforced by its incorporation within the existing financial reporting and the risk management process. Internal audit ensures compliance with CR governance.

Within the Sustainability team, Single Points of Contact (SPOCs) are defined for each segment (Business Unit). The SPOCs are the contacts for both the division management and the CR Champions. The CR Champions take responsibility for the operational implementation of measures and report to the GEB Sponsors and SPOCs on the progress of implementation. In each Business Unit, there is an average of 20-30 CR Champions who are jointly selected by the GEB Sponsors, the SPOCs and the CR. Take, for example, the B2C department, which is responsible for the implementation of digital accessibility. First of all, a SPOC is nominated within B2C. A CR Champion is then also nominated for each application (e.g. My Swisscom) or for services which are defined as needing to be accessible. Depending on priorities, the project teams or the line units implement the sustainability measures.

All the members of the sustainability network meet during the year. These sustainability community meetings, complete with special Green Lunches, raise awareness of the main sustainability issues and ensure that information is shared. The sustainability network run by the Sustainability team is open to all employees.