AT&T Sustainability Overview

June 18, 2013

John Schulz, Director, Sustainability Operations

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AT&T Sustainability Focus

Sustainability at AT&T

© 2013 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.

a way of doing business that recognizes our company’s impact on society, and the impact that social issues have on our business

Three focus areas…

People & Community

Technology Environment

• Aspire & Aspire Mentoring Academy• Military Support• Workforce Diversity and Inclusion• Supplier Diversity • Good wages, Good benefits• Training and Development• Strategic philanthropic giving• No Texting While Driving• Distributed Workplace• Governance• Community Engagement

• Privacy • Technology Empowers Efficiency• Online Safety• Digital Life• Smart Vehicles• Network Reliability• Healthcare• Disaster Recovery• Distance Learning• Education Technology• Emerging Devices• Accessibility• Innovation

• Resource Efficiency (energy, water, fuel)

• Fleet• Alternative Energy• Carbon Footprint/ Reporting• E-waste• Cell Phone Recycling• Eco-Rating• ENERGY STAR products• Paperless Billing• Packaging• Solid Waste/ Hazardous waste

Integrity and Innovation

© 2013 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.

© 2013 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.4

Resource Efficiency

© 2013 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.

Energy Efficiency:

•Focused Leadership: Sr. Director of Energy and Energy Council

•Energy Scorecard: Visibility and Accountability at 2,000 facilities

•Execution: Over 14,300 energy projects producing annualized savings of over $151 million from 2010-2012

Collaboration:

•Environmental Defense Fund, Rocky Mountain Institute, City of Chicago

Alternative Energy:

•Solar: 3,525 kW solar capacity at seven sites in California and New Jersey; over 3,500 kW capacity planned in 2013

•Fuel Cells: 7.5 MW fuel cell capacity at 11 sites in California; 7 WW capacity planned in 2013

•Wind: 10 percent of our electricity consumption for all AT&T facilities in Austin, Texas

© 2013 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.

AT&T Energy Program

AT&T and Environmental Defense Fund Water Project

Background• AT&T sites use 3.4B gallons of water annually.• 120 facilities represent 50% of usage.• 36 of the top-water using facilities are in water stressed areas.• Cooling towers at these sites consume approximately 1B gal/yr.

GoalAchieved: Develop operational improvements and best practices to optimize water cooling tower operations. Attempt to drive water, electricity, chemical and cost efficiencies across the cooling process, by focusing on cooling tower efficiency and the use of free air cooling, where available.

ObjectiveBecome recognized thought leader on water management:

© 2013 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.

Enabling Technology

© 2013 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.

Communications Technology Empowers

We worked with… To analyze the environmental impact of…

And identified potential environmental savings by 2020…

And potential financial impacts by 2020 of…

Global e-Sustainability Initiative (GeSI)

The Information and Communications Technology (ICT) industry

9.1 gigatons of CO2-e $1.9 trillion

Carbon Disclosure Project & Verdantix

Cloud Computing 85.7 million tons of CO2-e annually

$12.3 billion in energy savings alone

Carbon Disclosure Project & Verdantix

Telepresence (in place of some travel)

5.5 million metric tons of CO2-e

$19 billion

Carbon War Room Machine-to-Machine (M2M)

9.1 gigatons of CO2-e Almost $1 trillion

AT&T has engaged leading independent researchers to evaluate the environmental and financial benefits of ICT use.

© 2013 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.

© 2013 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.

ICT Benefits in Perspective