2018 Corporate Responsibility Report - Verizon

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Positive ChangeThrough Innovation2018 CorporateResponsibility Report

2018 CorporateResponsibility ReportThe economic, environmental and social challenges facing ustoday call for new solutions – and Verizon is at the forefront ofdelivering them. 5G technology and the array of Fourth IndustrialRevolution innovations transforming our world hold the potentialto create a cleaner, healthier, more inclusive world in which peoplefrom all backgrounds can achieve their full potential. And today,Verizon is building toward that future by working in communities toconnect people and businesses to each other and to the servicesthey need, to help cities operate and use energy more efficiently,and to give under-resourced students access to technology andeducation that will help them succeed in the digital economy.We’re working in partnership with communities and nationalorganizations such as the National Urban League, NationalDisability Leadership Alliance and many others that provide uswith perspectives and advice as we develop policy and makebusiness decisions to help address the issues they’re confronting.We’re also finding new ways to leverage Verizon’s technologyto create solutions that address the issues described inthe United Nations Sustainable Development Goals. Thisis Verizon’s road to progress, and it’s how we’re using ourtechnology to tackle the world’s biggest challenges.

Table of contentsPriorities56910CEO MessageLeadership Q & ACSR StrategyOur Purpose & GoalsCommunity121315161718EducationEducation Program ImpactHumanabilityDisaster ResponseVolunteerismEconomic ImpactProduct ResponsibilityV Team38394142434445464748Our CredoDiversity & InclusionEmployee Resource GroupsVeteran OutreachWorkforce ProfileEmployee Growth & DevelopmentLabor RelationsHealth & WellnessSafetyPay & Benefits20 Privacy21 Safety23 AccessibilitySupply ChainEnvironmentGovernance25 Enabling Energy Efficiency27 Emissions & Carbon Intensity29 Renewable Energy30 Efficient Facilities & Logistics31 Efficient Mobility32 Waste34 Water35 Environmental Management36 Green Team54 Code of Conduct55 Anti-corruption56 Corporate Governance & Risk Management58 Human Rights50 Supplier Code of Conduct51 Supplier Performance & DiversityESG Data CenterGRI Index

PrioritiesPlanBoldlyIn This SectionCEO MessageLeadership Q & ACSR StrategyOur Purpose & Goals5G and the advent of the Fourth Industrial Revolution create vast new opportunities to addressmany of the world’s most pressing social and environmental challenges. To take fulladvantage of those possibilities, Verizon is working to strengthen our social responsibilitystrategy. We’re adopting new goals and commitments and taking a fresh look at all theways our technology and our people can build a better, more responsible future.456910

Priorities CEO MessageToward a moresustainableand equitable futureAt Verizon, our mission is to deliver the promise of the digital world byempowering people to generate innovation and positive change. CEO HansVestberg believes that 5G will not only provide a quantum leap in connectivity – itwill also unleash exciting new opportunities to address the most pressingenvironmental and social challenges we face today. In addition to serving asChairman and CEO of Verizon, Hans is a current member of the LeadershipCouncil of the United Nations’ Sustainable Development Solutions Network.He is also a board member of the UN Foundation, the Whitaker Peace &Development Initiative, and Childhood USA (part of the Queen of Sweden’sWorld Childhood Foundation).Our company’s very purpose is to connect people to eachother – to bring people together across cultures to solveimportant problems.It can be difficult for one person to change the world, but as acompany with over 144,000 creative, passionate employeesand millions of valued customers, we have an opportunity tomake our mark on issues that matter. Together, we can useour shared ingenuity to take the world in a better direction.5Verizon 2018 Corporate Responsibility Report

Priorities Leadership Q & AA conversationwith Rose KirkChief Corporate Responsibility Officer & President, Verizon FoundationSenior social responsibility leader Rose Kirk addresses how Verizon ‘s CorporateSocial Responsibility (CSR) strategy today is building on past success – tacklingthe biggest problems in the world to benefit our customers, shareholders,employees and society.We’re sharpening our vision of whatsocial responsibility means at Verizon,and that vision is a bold one: To tacklethe biggest problems in the world tobenefit our customers, shareholders,employees and society.6Verizon 2018 Corporate Responsibility ReportQ: Today there is a heightened interest in a company’s purpose, goingbeyond financial performance to assess how it delivers value forall its stakeholders. How is Verizon’s CSR strategy evolving?A: We’re sharpening our vision of what social responsibility means at Verizon,and that vision is a bold one: To tackle the biggest problems in the worldto benefit our customers, shareholders, employees and society. We arebeing even more intentional about understanding the pressing economicand social challenges that communities are dealing with and leveragingproducts and solutions to address them. Also, we are working to ensurethat socially responsible practices are integrated throughout every facetof our business and become a core element of our corporate DNA. Ourfocus is on minimizing the environmental footprint of our own operations,and also on working with our vendors to improve the energy efficiency ofthe components and equipment that comprise our world-class network.Moreover, as a purchaser of more than 50 billion of goods and services,we are working in partnership with our suppliers to promote ethicaland responsible business practices throughout our ecosystem. As achampion of diversity and inclusion, we are working not only within ourown company and among our suppliers and business partners, but alsoserving as a leading voice among technology providers to ensure that thedigital world provides equitable opportunities so that no one is left behind.

Priorities Leadership Q & AQ:In today’s digital world, privacy is more relevant than ever. As you think about Verizon’s CSR strategy and objectives, what role doprivacy and data security play?A:The digital world offers myriad opportunities to improve lives and address economic, environmental and social challenges. But we know this:consumers will allow us to roll out these innovations only if they trust uswith their information. That’s why we are committed to transparency.Our privacy policy explains what information we collect about ourcustomers, how it is used and the choices our customers can make. Inaddition, we have safeguards in place to guard against unauthorizeduse or unauthorized disclosure of customer information, and have madesignificant investments in our security programming so that we have thecapabilities we need to stay ahead of current and future cyber threats.Getting privacy and security right, and strengthening the foundation oftrust with our customers are fundamental to the success of our businessover the long term.Verizon’s Chief Privacy Officer and Chief Information Security Officer, bothof whom are women, are leading the charge so that Verizon is well positionedto meet the diverse needs and expectations of our customers and ensuretrust with their data. They participate in the efforts of numerous organizationscomposed of diverse stakeholders so that they are actively engaged inhow new developments can engender even greater consumer trust.Q:You have a goal to cut the carbon intensity of your operations in half by 2025. Are on you on track with this and other environmentalcommitments?A:Since 2016, we have reduced our carbon intensity by 28 percent and are on pace to reach our goal. In 2018, we announced a new commitment tosource renewable energy equivalent to 50 percent of our total electricityusage by 2025, a significant undertaking for a company of our size. This willfurther contribute to reducing our carbon intensity. Verizon recently issueda 1 billion green bond, a first for our industry in the U.S., with proceedsto be used to fund key environmental priorities like renewable energy,energy efficiency, green buildings, water conservation and biodiversity.So, even as we make gains toward our goals, we are raising the bar on ourenvironmental objectives.7Verizon 2018 Corporate Responsibility ReportQ:For many years Verizon has been recognized as a leader in diversity and inclusion. How does that approach contribute tobusiness success?A:We are proud of our standing as a leader in diversity and inclusion, not only in our industry, but among all major corporations. We areconsistently recognized as a top employer for veterans, people ofcolor, women and people with disabilities. And at Verizon, diversitystarts at the top. Half of our board members are women or peopleof color, and these groups each fill roughly a third of our seniormanagement positions.Our business is all about innovation. In order to attract and retainthe very best innovators, it’s essential that we have a work culturethat is inclusive and lets employees bring their authentic selves towork every day. Also, our primary goal is to serve our customers’needs. The millions of customers we serve are diverse across everydimension, and a diverse and inclusive team is an absolute necessityto understand and meet their expectations.

Priorities Leadership Q & AQ:Why is STEM education such an important priority for Verizon? A:Today, millions of American students are lacking the technology and skills required for success in a world that grows more digital every day. As acountry, we cannot ignore the importance of developing the next generationof technology savvy citizens to fuel a healthy economy and promote ourglobal competitiveness.Verizon’sefforts to close the digital divide are aimed at helping those with little or no access to the digital world gain the ability to use technology ineconomically advantageous ways.Our Verizon Innovative Learning program provides free technology, freeinternet access and a next-gen, technology-infused curriculum thatchanges the way teachers teach and students learn. We work hand inhand with nonprofit partners and our team of education and technologyexperts to build and administer STEM-focused programs from theground up. We carefully measure and refine our programs to ensure we’remaking a difference – and we have. Our programs drive real academicimprovements such as improved math achievement and increased studentengagement as compared to non-Verizon Innovative Learning schools.Additionally, we are committed to being the first to bring 5G technology tothe classroom, where our students and teachers will be at the forefront ofthe transformative technology that will drive the Fourth Industrial Revolution.Technology such as virtual and augmented reality and advanced, lowlatency robotics, along with more immersive collaboration experiences willfurther prepare the next generation for tomorrow’s digital world.Since 2012, we have committed a total of 400 million to help underresourced communities bridge the digital divide. We have helped morethan 1 million kids to date and plan to help roughly 2 million more by 2021.8Verizon 2018 Corporate Responsibility Report

Priorities CSR StrategyA strategy derived fromrobust stakeholderengagementOur CSR strategy is grounded in our priorities, which are defined by ourCredo – the set of principles that describe who we are and what Verizon’scustomers value. Many principles of our Credo, including focus outward onthe customer, having integrity at our core, embracing diversity and sharingour success with the community are inherent in our social responsibilityframework. This framework outlines the focus areas in which we areinfusing social responsibility practices into our core operations. They are:Growth and customers: We are building processes to identify and pursuemarket opportunities that address economic and social challenges whileenabling significant revenue generation for Verizon. In addition, we are workingto ensure that our product development processes incorporate product lifecycle considerations, and our business cases include environmental andhuman rights considerations.Performance excellence: We are further integrating efforts to minimizeour environmental impact into our processes, and finding additional waysto work in partnership with our suppliers to scale these efforts. In addition,we are targeting opportunities to align with the social responsibility goalsof our partners and suppliers to effect positive change on a global scale.Trust: We are redoubling our efforts to be transparent and put policies inplace that engender customer trust.We partnered with BSR, the global sustainability nonprofit, to identify andprioritize the environmental, social and governance (ESG) issues mostrelevant to our stakeholders. We group those issues into three categories:TransformativeIssues that could significantly changethe impact of our business. Privacy, data security & freedom of expression Technology solutions to social issues Community investmentStrategicIssues that may represent risk oropportunity for the business. Employee engagement Climate change Corporate governanceFundamentalIssues managed as part ofresponsible business practices. Supply chain standards Appropriate use of digital technology Content standards & user controls9Verizon 2018 Corporate Responsibility Report

Priorities Our Purpose & GoalsStrengthening ourcommitmentsWith the inherent capability to address global societal challenges, Verizontechnology underpins the innovation that can lead to achievement of all 17 of theUnited Nations Sustainable Development Goals. Moreover, we have determinedthat our technology and assets can have unique impact in addressing SDG 4:providing young people with relevant skills for good jobs and entrepreneurshipand SDG 8: promoting an environmentally sustainable economy. In addition, wehave set aggressive goals that align with SDG 13: climate action.As we continue our work to address society’s big challenges, we will continueto identify additional SDGs that our technology has the potential to helpachieve. We anticipate that this will lead to setting goals that focus on additionalSDG targets.As part of our strategy, we set goals that demonstrate how we arecontributing to the achievement of these SDGs: By 2021, Verizon will help provide 3 million students withthe skills required to put them on the path to success in anincreasingly tech-dependent job market.By 2022, Verizon’s networks and connected solutions willsave more than double the amount of global emissions thatour operations create.In late 2018, we set an additional goal that aligns with SDG 13: By 2025, Verizon will source renewable energy equivalentto 50 percent of our total electricity usage.10Verizon 2018 Corporate Responsibility ReportAlso in alignment with SDG 13,we have made progress with theseexisting goals:By 2020, 80 percent of our assessed suppliers will be compliant with Verizon’soverall CSR standards.By 2025, we will reduce water consumption by 15 percent against our2016 baseline.By 2025, we will reduce our carbon intensity (a measure of the carbon ourbusiness emits divided by the terabytes of data carried by our networks) by50 percent against our 2016 baseline.By 2030, we will plant 2 million trees in communities around the world,including 250,000 in areas impacted by the 2017 hurricane season.

CommunityServeBroadlyIn This SectionEducationEducation Program ImpactHumanabilityDisaster ResponseVolunteerismEconomic ImpactEducation is the fuel that powers innovation and creates a more sustainable future. That’swhy Verizon has made significant, long-term investments in STEM education in America’sschools – supporting innovative programs that reach students in underserved areas. Ourwork to build and strengthen communities also encompasses volunteerism by thousandsof V Teamers, a leading role in responding to natural disasters, and our commitment toleverage our technology in diverse and exciting ways to help people do more in this world.11121315161718

Community EducationVerizon InnovativeLearning: opening newdoors for millionsof studentsMillions of students lack access totechnology in the classroom and athome. Without those resources theyrun the risk of being left behind in aworld that grows ever more digital bythe day. Moreover, our nation’s abilityto be globally competitive, and oureconomic prospects, will be imperiledif we do not bridge the digital divideand succeed in leveraging the talent ofall our young people. Since 2012, theVerizon Foundation has been workingto support those students through atransformative program called VerizonInnovative Learning. The programprovides free technology, free internetaccess and hands-on learningexperiences to help give underresourced students the educationthey deserve. It’s powered by a nextgen, technology-infused curriculumthat fundamentally changes the wayteachers teach and students learn.These programs transform middleschools with digital technology,immerse young men of color andyoung women in rural communitiesin tech and entrepreneurshipeducation and train high schoolstudents to put design thinkingprinciples to use in solving real-worldbusiness and societal challenges.By 2021, we aim to:In 2018Reach 3 million studentsNearly 4,300 V Teamersand provide them with the skills to put them on the path tosuccess in an increasingly tech-dependent job market.volunteered as STEM mentorsNearly 1.7 million studentsimpacted since 201212Verizon 2018 Corporate Responsibility Report

Community Education Program ImpactWe launched the Verizon Innovative Learning schools program in eight schools in 2014, and the initiative has grown steadily in the years since. During the school yearthat began in 2018, the number of schools that have participated since 2014 reached 100.Total schools in programsince 201482146742018-2019 school year gstudents4,375participatingteachers201420152016 201759%54%believe that havingthe technologymakes sciencemore interesting47%believe that havingthe technologymakes mathmore interesting 79%76%said the program helped them change the waythey teachAssessing improvement59%63%Verizon 2018 Corporate Responsibility Report50%76%said that theprogramenhancedstudentengagement59%indicated that theprogram improvedtheir interactionswith students50%of students feelmore confidentin school whenthey use theirtechnologysaid the program helped them reach goals they hadalready set for their classroom and for their teachingWe regularly measure program success by surveying both teachers and students on the impact of the program.*13Teachers reported classroomimprovementsTeacher technology proficiencyimproved* Results measured from the 62 schools participating during the 2017-2018 school year.50%42%like schoolmore2018Teacher technology proficiencyimprovedTeachertechnology proficiency improved76%Student attitudes changed

Community Education Program ImpactUnderrepresented middleschool students in STEMTwo Verizon Innovative Learningprograms are designed to addressthe needs of groups that aresignificantly underrepresented inSTEM fields: young men of colorand young women in rural areas.Young men of colorIn 2018 we reached:These programs introduce studentsto next-gen technologies such asaugmented reality, virtual reality,3D design and printing and more.Students collaborate on projectsthat solve for the challengesaddressed by the United NationsSustainable Development Goals.Students attend summer immersionon campus at partner communitycolleges and universities, as wellas weekly enrichment sessionsyear round. Also, they’re connectedwith mentors and exposed to thecareer opportunities that STEM,technology and entrepreneurshiphold for their futures.2,177After participating in the 2018 summer program:99%increased ability in STEM92%were more interested in attending a four-year collegemiddle school studentsenrolled through93%2497%Young women in rural areasIn 2018 we reached:After participating in the 2018 summer program:participating institutionshad improved problem-solving skillswere more interested in a STEM career100%increased ability in STEMLearn more at verizon.com/inspires.89%were more interested in attending a four-year college1,297girls at92%had improved communication skills16community colleges14Verizon 2018 Corporate Responsibility Report97%were more interested in a STEM career

Community HumanabilityMaking morepossibleWe’re giving humans the ability to do more in this world by creating theconnections that turn innovative ideas into reality. We call it Humanability. It’sthe idea that, in order to deliver real value, technology is always about peopleand making their lives better. It’s why we’re partnering with visionaries acrossmany disciplines and industries to use technology as a force for good and toenable humans to do more than they ever thought possible. From improvinghealth care to making driving safer to leveling the playing field for middleand high-school students, Humanability is how Verizon and our partners areleveraging technology to unlock human potential.Learn more at humanability.com.We’re partnering with visionariesacross many disciplines andindustries to use technology asa force for good and to enablehumans to do more than ever.15Verizon 2018 Corporate Responsibility Report

Community Disaster ResponseHelping millionsget back ontheir feetUnfortunately, 2018 brought natural disasters to many of the areas weserve. Our Credo tells us to run to a crisis, not away, and Verizon and ouremployees stepped forward in a variety of ways to help those who werevictims of hurricanes, wildfires, floods, volcanic eruptions and earthquakes.Our employees helped millions of people impacted by these disastersget back on their feet. In total, Verizon donated more than 4.6 million todisaster recovery and community projects throughout the U.S., including 1 million to the American Red Cross for Hurricane Michael relief.Verizon launched an Emergency Resource Center Hub, which provides updateson our response to everything from wildfires to earthquakes to hurricanes.This hub allows news media, local officials, employees and others to learnabout our emergency response efforts. For current information on Verizon’semergency response efforts, please visit our Emergency Resource Center.16Verizon 2018 Corporate Responsibility Report2018 Verizon donationsMore than 4.6 millionto disaster recovery projects throughout the U.S.

Community VolunteerismThe V Team —taking actionfor othersThroughout the year, Verizon employees are making a difference asvolunteers, supporting their neighbors and helping make their communitiesmore resilient. Through their volunteer efforts, these V Team membersembody an important component of our Credo: We are good corporatecitizens and share our success with the community. In 2018 V Teamersdonated more than 200,000 hours to nonprofit causes.V Team members give generously, not only of their time but also their financialresources. Through our Matching Gifts Program, V Teamers donated millionsof dollars in 2018 with corporate matching gifts of up to 1,000 for their personalcharitable donations and up to 5,000 for donations to eligible educationalinstitutions. Team members who volunteer at least 50 hours at a nonprofit duringa calendar year can generate a 750 donation from Verizon to that organization.The talent and energy of V Teamers helps bring our Verizon InnovativeLearning initiative to life. In 2018, nearly 4,300 V Teamers shared their timeand expertise by serving as STEM mentors.Our Employee Resource Groups are committed to many volunteer initiativesacross the globe like supporting Robotics teams, mentoring students, andserving as role models to encourage girls and students of color to pursuecareers in STEM, to name a few.More than 27,000 V Teamers across 36 countries and territories belongto the Verizon Green Team, our grassroots collective of volunteersdedicated to environmental stewardship.17Verizon 2018 Corporate Responsibility ReportThe V Team’s impact in 2018 8,109,604donated by Verizon employeesto schools and nonprofits 9,175,405202,005employees in support of nonprofitsdonated through Verizon’s Matching Gifts program – supporting employees’donations of time and money to schools and charitable organizations

%Community Economic ImpactOur economic impact(dollars in billions)Our financial decisions and commitments as a company – from our owninvestments in our network, to our commitment to purchase from diversesuppliers, to paying retirees’ pensions and our shareowners’ dividends –have a positive impact on the communities we serve.Cash dividends paid to shareownersPension and other retirement paymentsPensionand other retirement 1820185.15.120189.89.820183.03.0%201859%59%Capital investmentCash paid for income taxes*Capital investment%%Cash dividends paid to shareownersPurchases from diverse suppliersPurchasesfrom diverse suppliersCash paid for income 4.9%59%18Verizon 2018 Corporate Responsibility Report2018*Net of amounts refunded2018

Product ResponsibilityProtectTransparentlyIn This SectionPrivacySafetyAccessibilityVerizon’s technology offers vast potential to improve lives and build more resilient andsustainable communities. But as the pace of innovation continues to accelerate, thesenew technologies raise important questions about consumer privacy and the ethicalimplications of emerging technologies. These questions make it more important thanever that we deliver our products and services responsibly and that we adopt policiesand safeguards to ensure that we continue to earn our customers’ trust.19202123

Product Responsibility PrivacyFortifying afoundation of trustFosteringtransparencyThe products and services we provide transform how people, businessesand things connect with one another. We understand that the success ofour products and services depends on customers’ trust that their privacy isprotected and their choices are respected.Verizon publishes semiannual reports online that present the number of demandswe received from law enforcement in the United States and other countries inwhich we did business. To learn more about how we handle government requestsfor customer information, both in the U.S. and internationally, please see our mostrecent reports here: verizon.com/about/portal/transparency-report.We strive to communicate clearly and transparently about the information wecollect and how we use it. Ensuring that customers know how their information isbeing used is the bedrock of an effective privacy policy. We are also committed toproviding our customers with choices about how their information can be used.Protecting the privacy and security of customer information is a responsibilitywe take seriously.We are committed to providing ourcustomers with choices about howtheir information can be used.As we bring new products and services to market or expand our offeringsthrough acquisitions, we examine the relevant privacy and securityquestions. Before new products are brought to market, we embrace a designapproach called privacy by design – to make sure we are embedding privacyconsiderations from the beginning. We take other appropriate steps to provideour customers with strong and meaningful privacy and security protections.We have long advocated a uniform federal privacy framework that wouldapply to all players in the digital technology ecosystem. We believe that clear,consistent rules of the road would benefit our customers – no matter how theyuse their devices, apps or services.20Verizon 2018 Corporate Responsibility ReportAt Verizon, we are committed to maintaining strong and meaningful privacyprotections for customers. Our privacy policy is designed to inform you aboutthe information we collect, how we use it and your options about certain usesof information.To learn more about Verizon’s privacy policies, read a message fromour Chief Privacy Officer, Karen Zacharia, sage.Our full privacy policy is available .

Product Responsibility SafetySafe andappropriate usageOur content policy for Verizon networks ensures that content is age-rated,conforms to recognized third-party content-rating systems, when available,and is consistent with industry best practices.We meet our customers’ need to manage their individual access to contentby providing them with several content-management tools, including:Fios TV parentalcontrolsthat go beyond rating-basedfilters and allow parents toblock content by age group,control the display of certainprogramming and informationon the on-screen guideand even block specificchannels or categories.Enhanced contentfiltering toolsfor smartphones, tablets andcomputers, offered througha partnership with contentfiltering-technology leaderMobicip, to help childrenmake positive choiceseverywhere they browse.21Verizon 2018 Corporate Responsibility ReportMy Fios appthat enables parents tocontrol how much time theirkids spend online throughper-device internet usagelimits, and lets parents setdaily or weekly time limitson any connected device.Verizon InternetSecurity Suitethat helps protect computers,personal information andchildren from a wide arrayof online threats, includinghacking and identity theft.Verizon SmartFamilylets parents know wheretheir kids are by tracking theirsmartphones. It also letsparents li

Verizon 2018 Corporate Responsibility Report. Senior social responsibility leader Rose Kirk addresses how Verizon 's Corporate Social Responsibility (CSR) strategy today is building on past success - tackling . the biggest problems in the world to benefit our customers, shareholders, employees and society. A conversation with Rose Kirk

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