Towards Sustainable Management

Materiality

G4-18, G4-19, G4-20, G4-21

The transformation of our business and of our environment can only be conceived within a context of overall sustainability. Accordingly, in order to advance along the path towards becoming an organization whose operations take into account the aspects that are material to sustainability in our industry and in the markets in which we participate, we first set out to identify such aspects through consultation process with our stakeholders.

As part of the process, in 2015¹ we conducted an online survey among a sample mix of our customers, employees, executive officers, investors, directors and suppliers in five countries. In the end, more than 49 thousand people participated in this survey.

The results of the survey were then reviewed by the corporate Sustainability Committee, which identified, prioritized and validated the materiality of the topics of concern.

To further ascertain the materiality of the topics so identified, from both an internal and an external perspective, we analyzed the practices employed by other telecommunications companies worldwide and conducted a review of our processes and documentation.

Given the ever-changing nature of trends, we intend to update our materiality analysis in 2017 to ensure the inclusion of all relevant economic, social and environmental impacts of our operations.

The principal material aspects of our business are as follows:

• Fostering the adoption of good Corporate Governance practices.
• Ensuring the profitability of our company.
• Acting by the principles contained in our Code of Ethics.
• Providing for customer satisfaction.
• Disseminating anti-corruption information and mechanisms.
• Providing training and development to our employees.
• Disclosing our risk management strategy for service disruptions.
• Reporting on instances of monopolistic or anti-trust practices.
• Bridging the digital divide.
• Ensuring the security of information.

In 2016, some of our stakeholders requested the inclusion of certain additional topics in our report —such as the risks associated with the data privacy — and we are in the process of revising our Code of Ethics and related policies accordingly.

United Nations Global Compact and Sustainable Development Goals

In 2015, América Móvil and our subsidiaries entered the process of joining the United Nations Global Compact, which calls for companies to align with universal principles on human rights, labor right, environmental preservation, and fight against corruption.

In early 2016 the commitment became effective, and over the course of that year we participated and invited all members of the sustainability committees of our subsidiaries, as well as certain major suppliers, to participate in various online training courses offered by this initiative.

Principles of the United Nations Global Compact
Human Rights
1.	Businesses should support and respect the protection of internationally proclaimed human rights within their areas of influence.
2.	Businesses should make sure that they are not complicit in human rights abuses.
Labor
3.	Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.
4.	Businesses should uphold the elimination of all forms of forced and compulsory labor.
5.	Businesses should uphold the effective abolition of child labor.
6.	Businesses should uphold the elimination of discrimination in respect of employment and occupation.
Environment
7.	Businesses should support a precautionary approach to environmental challenges.
8.	Businesses should undertake initiatives to promote greater environmental responsibility.
9.	Businesses should encourage the development and diffusion of environmentally friendly technologies.
Anti-corruption
10.	Businesses should work against corruption in all its forms, including extortion and bribery.

In 2016, we undertook an assessment of the manners in which we can contribute to the achievement of the Sustainable Development Goals defined also by the United Nations. Based on the characteristics of our organization, and on our ongoing actions on sustainability, we determined that we have the ability to contribute primarily to the following nine of the 17 goals:

We provide access to quality technical and professional education to both men and women in order to enable them to improve the skills required to have better job opportunities, as well as the skills needed for entrepreneurship. These opportunities are available to our employees through Aprende.org platform and Claro Colombia University. In addition, through the Carso Digital Fellowship and the Telmex-Telcel Foundation Fellowship, we provide support in the form of computers and Internet access to elementary, middle and high school-aged children of our employees, and financial and meal support to high-performing undergraduate and post-graduate students. We also provide access to quality education opportunities to the members of our communities through technology platforms such as Académica, Khan Academy in Spanish, Ponte a Prueba 2015, MIT Open Course Ware, Net Education, and Udacity.

We offer a number of technological options for fostering economic productivity and job creation through Aprende.org platform, Training for the Job initiative, and Claro Colombia University. In addition, we use technology as a tool for strengthening the ability of domestic financial institutions to promote the use of banking, financial, and insurance services and make them increasingly accessible to all people. We have created in excess of 193 thousand jobs and have incorporated in our supplier selection process measures designed to contribute to the elimination of forced and child labor. We protect the rights of our employees as such, and foster the maintenance of a safe workplace environment.

We develop and upgrade on an ongoing basis our existing infrastructure in the countries in which we operate, to connect a growing number of people with the world and with their worlds as a means for fostering economic development, environmental sustainability, and the wellbeing of all human beings. We provide access to IT and telecommunications services to marginalized communities in isolated geographic regions in order to contribute to bridging the digital divide by bringing more people into the digital era. In addition, through Technology and Innovation Center (CTIN), we offer college students opportunities to develop hardware, software, and applications, and provide them with technologically innovative design, finance, and marketing tools. We also contribute to the education of talented young people who are interested in the development of content and new mobile telephony services, through Mobile Campus.

We use technology to potentiate the digital, economic and social inclusion of many, without regard of age, religion, gender, disability, origin, economic status, or other condition. One example of this is Telcel 4GLTE-Infinitum Digital Village, an event at which we provide to individuals of all ages free-of-charge access to and training on the use of information and communication technology (ICT) through workshops, courses, and conferences. In addition, through XXI Century Mexico, an event that caters to Telmex-Telcel Foundation scholars, we provide a space for exchanging ideas on topics relating to politics, the economy, science, sports, culture, and human development, with world-renowned lecturers. Moreover, through our digital learning spaces Digital Libraries and Telmex Hub, we reinforce the importance of digital inclusion.

We provide support to the victims of natural disasters by ensuring the continuing availability of our voice and data services, and by providing such services free-of-charge in the immediate aftermath of the occurrence. We have established response protocols for both foreseeable and unforeseeable events. For example, during hurricane conditions we secure our base stations, deploy crews, and deliver food supplies, spare parts, and power generators with full fuel tanks to ensure their operability. In addition, through our Natural Disasters Support initiative, we provide humanitarian relief to residents of the affected areas.

We are committed to keeping our entire value chain free from any form of abuse, exploitation, trafficking, torture, and violence against children, and endeavor to reduce the occurrence of incidents of bribery and other forms of corruption. Since our joining the Global Compact, we have taken a number of actions at our subsidiaries' level to comply with the 10 principles established by the initiative. We seek to ensure the public availability of information, and respect the fundamental rights of our employees by allowing them to engage in collective bargaining. In addition, we contribute to the overall development of the members of our communities through ASUME (Asociación de Superación por México), which is engaged in the formation of happy and responsible men and woman of peace who are devoted to themselves, their families, their jobs, and their countries.

Stakeholders

G4-24, G4-25, G4-26, G4-27

We have identified nine primary stakeholder groups based on their influence on our operations and productivity, and are engaged in an ongoing dialogue with each such group.

Stakeholders and means of communication
	Customers Social media, market research studies, helplines, corporate website, chat, mobile applications, self-service modules, suggestion mailboxes, mail, and blogs.	Media Corporate communications, e-mail, dedicated space in our website, telephone calls, events, and in-person meetings.	Investors Events and presentations, quarterly conference calls, operating and financial reports, corporate websites, e-mail, and dedicated telephone line.
	Suppliers Dedicated telephone lines, grievance mailboxes, events, and in-person meetings.	Employees Surveys, intranet, e-mailing, internal publications, hotlines, and grievance mailboxes.	Distributors E-mail, telephone calls, specialized publications, manuals, advertising materials, and satisfaction surveys.
	Industry associations and other participants In-person meetings, special events, and industry information exchanges.	Government authorities Alliances, agreements, in-person meetings, information requests, and audits.	Community Social programs and events, as well as in-person meetings.

Through formal communications with our stakeholders, in 2016 we identified and addressed key and other aspects of our operations that had given rise to grievances for various reasons, which helped us improve our relationships with our stakeholders in each country.

We asses our channels of communication with our stakeholders frequently in order to improve them and ensure the ongoing maintenance of a transparent, close, timely, and meaningful dialogue.

Maintaining two-way communication channels with our stakeholders allows us to hear their comments and concerns about topics such as the installation of antennas and base stations, the inclusion of individuals with disabilities in our workforce, our waste management efforts, and our interactions with government agencies.

Scope of the Report

G4-13-G4-22, G4-23, G4-28, G4-29, G4-30, G4-32, G4-33

We are in our sixth year of reporting on sustainability. Our Sustainability Report contains a transparent disclosure of our operating, social, labor and environmental performance during the period from January 1st to December 31, 2016.

Our Sustainability Report has been prepared following the Global Reporting Initiative guidelines in its G4 version and in accordance with the Core option, without external assurance. Unless otherwise indicated, the information contained herein encompasses the 25 countries in which we currently operate. Our total workforce includes the employees of our following subsidiaries: Telvista USA, Telvista México, Speedy Móvil, UNO TV México, Plaza VIP, Editorial Contenido, Rie, CMI, Tracfone, DLA USA, DLA Argentina, Comertel, Omsasi, Inttelmex, Tecmarketing, Red Uno, Telnor, CTBR, LIMSA, CYCSA, IMTSA, FYCSA, Teleconstructora, SCITUM, GTA, VSYS, Multicom, Telmex USA, OraTV USA, HITSS USA, HITSS, ADSA, CMI, TELINT, AMCO, Edico, Transfer, Imusic+E35, and Brasil Center.

Our Brazilian subsidiaries Embratel, Claro and NET merged in 2016. As a result, our operations in Brazil are undergoing a transition period and this report does not include certain indicators that were included in our 2015 Sustainability Report.

In 2016, we did not reformulate any information included in previous reports, and there was no material change in the scope, coverage, our structure, ownership, or supply chain. We have updated our CO₂ emissions data for 2015 to include our emissions by country. Accordingly, the emissions data contained herein differs from the data contained in our 2015 Sustainability Report.