CDP 2011 Investor CDP 2011 Information Request Carbon ... · 4 0.6 Modules As part of the Investor...

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Carbon Disclosure Project CDP 2011 Investor CDP 2011 Information Request

AT&T Inc.

Module: Introduction

Page: Introduction

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Introduction

Please give a general description and introduction to your organization

AT&T Inc. (NYSE:T) is a premier communications holding company. Its subsidiaries and affiliates – AT&T operating companies – are the providers of AT&T services in the United States and around the world. With a powerful array of network resources that includes the nation’s fastest mobile broadband network, AT&T is a leading provider of wireless, Wi-Fi, high speed Internet and voice services. A leader in mobile broadband, AT&T also offers the best wireless coverage worldwide, offering the most wireless phones that work in the most countries. It also offers advanced TV services under the AT&T U-verse® and AT&T │DIRECTV brands. The company’s suite of IP-based business communications services is one of the most advanced in the world. In domestic markets, AT&T Advertising Solutions and AT&T Interactive are known for their leadership in local search and advertising. In 2010, AT&T again ranked among the 50 Most Admired Companies by FORTUNE® magazine.

0.2

Reporting Year

Please state the start and end date of the year for which you are reporting data. The current reporting year is the latest/most recent 12-month period for which data is reported. Enter the dates of this year first. We request data for more than one reporting period for some emission accounting questions. Please provide data for the three years prior to the current reporting year if you have not provided this information before, or if this is the first time you have answered a CDP information request. (This does not apply if you have been offered and selected the option of answering the shorter questionnaire). If you are going to provide additional years of data, please give the dates of those reporting periods here. Work backwards from the most recent reporting year. Please enter dates in following format: day(DD)/month(MM)/year(YYYY) (i.e. 31/01/2001).

Enter Periods that will be disclosed

Fri 01 Jan 2010 - Sat 01 Jan 2011

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Country list configuration

Please select the countries for which you will be supplying data. This selection will be carried forward to assist you in completing your response

Select country

USA ARGENTINA AUSTRALIA AUSTRIA BAHRAIN BELGIUM BRAZIL BULGARIA CANADA CHILE CHINA COLOMBIA COSTA RICA CROATIA CYPRUS CZECH DENMARK EGYPT EL SALVADOR EQUADOR FINLAND FRANCE GERMANY GREECE HONG KONG HUNGARY INDIA ISRAEL ITALY JAPAN LUXEMBURG MALAYSIA MEXICO MOROCCO NETHERLANDS

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Select country

NEW ZEALAND NORWAY PAKISTAN PANAMA PERU PHILIPPINES POLAND PORTUGAL ROMANIA RUSSIA SINGAPORE SLOVAKIA SLOVENIA SOUTH AFRICA SOUTH KOREA SPAIN SWEDEN SWITZERLAND TAIWAN THAILAND TURKEY UAE UK VENEZUELA VIETNAM

0.4

Currency selection

Please select the currency in which you would like to submit your response. All financial information contained in the response should be in this currency. USD($)

0.5

Please select if you wish to complete a shorter information request

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0.6

Modules

As part of the Investor CDP information request, electric utilities, companies with electric utility activities or assets, companies in the automobile or auto component manufacture sectors and companies in the oil and gas industry should complete supplementary questions in addition to the main questionnaire. If you are in these sectors (according to the Global Industry Classification Standard (GICS)), the corresponding sector modules will be marked as default options to your information request. If you want to query your classification, please email [email protected]. If you have not been presented with a sector module that you consider would be appropriate for your company to answer, please select the module below. If you wish to view the questions first, please see https://www.cdproject.net/en-US/Programmes/Pages/More-questionnaires.aspx.

Further Information

Module: Management [Investor]

Page: 1. Governance

1.1

Where is the highest level of direct responsibility for climate change within your company?

INDIVIDUAL/SUB-SET OF THE BOARD OR OTHER COMMITTEE APPOINTED BY THE BOARD SENIOR MANAGER/OFFICER OTHER MANAGER/OFFICER NO INDIVIDUAL OR COMMITTEE WITH OVERALL RESPONSIBILITY FOR CLIMATE CHANGE

1.1a

Please identify the position of the individual or name of the committee with this responsibility

Charlene Lake, Chief Sustainability Officer, who reports to the Public Policy committee of the AT&T Board of Directors three times a year on sustainability matters per the charter of that committee.

1.2

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Do you provide incentives for the management of climate change issues, including the attainment of targets?

YES NO

1.2a

Please complete the table

Who is entitled to benefit from these incentives?

The type of incentives

Incentivised performance indicator

BOARD CHARIMAN

BOARD/EXECUTIVE CHAIRMAN DIRECTOR ON BOARD

CORPORATE EXECUTIVE TEAM CEO COO

EXECUTIVE OFFICER MANAGEMENT GROUP

BUSINESS UNIT MANAGERS FACILITY MANAGERS

PROCESS OPERATION MANAGERS PUBLIC AFFAIRS MANAGERS

RISK MANAGERS ALL EMPLOYEES

OTHER

MONETARY REWARD RECOGNITION (NON-MONETARY)

OTHER NON-MONETARY REWARD

Energy Scorecard Score factored into annual performance review

Page: 2. Strategy

2.1

Please select the option that best describes your risk management procedures with regard to climate change risks and opportunities INTEGRATED INTO MUTI-DISCIPLINARY COMPANY WIDE RISK MANAGEMENT PROCESSES A SPECIFIC CLIMATE CHANGE RISK MANAGEMENT PROCESS

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THERE ARE NO DOCUMENT PROCESSES FOR ASSESSING AND MANAGING RISKS AND OPPORTUNITIES FROM CLIMATE CHANGE

2.1a

Please provide further details (see guidance)

In 2008 we conducted our first strategic assessment to identify key risks and opportunities for our company. In 2010, we updated our assessment to account for changes over the preceding two years. We examined 44 sustainability-related issues and assessed their importance to our business and stakeholders. To do so, we called on several groups to provide insight, including: Business for Social Responsibility (BSR), World Wildlife Fund (WWF), Saatchi and Saatchi S, the Carbon Disclosure Project (CDP), World Resources Institute (WRI), the Pacific Institute, and the Environmental Defense Fund (EDF), as well as multiple consumer and interest groups who provide insight from national and local perspective. The results of this were reported across the sustainability program and up to the officer-level Citizenship & Sustainability Steering Committee.

2.2

Is climate change integrated into your business strategy?

YES NO

2.2a

Please describe the process and outcomes (see guidance)

The Public Policy Committee of the Board of Directors has oversight over all Citizenship & Sustainability issues, including environmental sustainability and the management of company emissions. The Chief Sustainability Officer reports to the Board committee three times a year to provide updates and receive input on the direction of the sustainability work within AT&T. This includes the results of the bi-annual strategic assessment of sustainability-related risks and opportunities. More specifically, progress with respect to understanding and managing the Company’s carbon footprint are reviewed. Proactive management of our carbon footprint should help manage Greenhouse Gas emissions which are generally identified as a major contributor to potential changes in climate. Separately, our Citizenship & Sustainability Steering Committee comprises senior executives and officers from across the company with responsibility for the business areas most linked to our current citizenship & sustainability priorities, including the management of our company greenhouse gas emissions. The committee meets quarterly to identify priorities, align resources and help further integrate these issues into our business operations. It is headed by the Chief Sustainability Officer, who works with the chairman’s office, AT&T’s board of directors and the company’s executive management team to further integrate sustainable business practices across the company and its supply chain. We also have more than 20 expert teams that are organized around each sustainability issue that is important to our company, including the management of greenhouse gas emissions. The calculation of our company’s GHG emissions is managed in our Energy management group, and we have a cross-functional expert team responsible for the strategy and communication aspects of the data. In addition to the GHG expert team, we have many expert teams that are directly related to the issues that are the largest contributors to our emissions. These teams all come together through our Energy Council to work on managing our emissions. The council is overseen by our Energy Director, who manages efforts

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across all business units, driving comprehensive programs to reduce energy consumption and directing AT&T’s energy purchasing strategies. To guide short-term and long term strategies, we conduct a bi-annual strategic assessment. In 2010, we updated our assessment to account for changes over the preceding two years, as we conducted our first assessment in 2008. We examined 44 sustainability-related issues and assessed their importance to our business and stakeholders. To do so, we called on several groups to provide insight, including: Business for Social Responsibility (BSR), World Wildlife Fund (WWF), Saatchi and Saatchi S, the Carbon Disclosure Project (CDP), World Resources Institute (WRI), the Pacific Institute, and the Environmental Defense Fund (EDF), as well as multiple consumer and interest groups who provide insight from national and local perspective. The issues that ranked the highest for us are company energy use, innovation, network reliability, customer privacy and data security and diversity. The results of this were reported across the sustainability program and up to the officer-level Citizenship & Sustainability Steering Committee.

2.2b

Please explain why not

N/A

2.3

Do you engage with policy makers to encourage further action on mitigation and/or adaptation? YES

NO

2.3a

Please explain (i) the engagement process and (ii) actions you are advocating

Public policy can accelerate society's transition to a world less reliant on fossil fuels. We hope to encourage the pace of change by taking an active part in regulatory initiatives and strategic alliances. Updating the Country's Power Supply In 2010, we continued to provided input to help resolve issues and provide a framework that will accelerate smart grid deployment and help put the U.S. on a path toward a more energy-efficient economy. At the national level we contributed to the content of the National Institute of Standard and Technology (NIST) task force providing guidance on Smart Grid Cyber Security. We also provided input to the Department of Energy describing how commercial networks – both wireline and wireless – can reduce costs for utilities and materially advance the pace at which the Smart Grid capabilities can be introduced. We also continued our dialogue with the U.S. Department of Energy, the Federal Communications Commission, the Federal Energy Regulatory Commission and the National Institute of Standards and Technology on recommendations for a regulatory framework and standards that will accelerate smart grid deployment, and help put the U.S. on a path toward a more energy-efficient economy.

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Smart grid technology has the potential to cut U.S. electrical power generation sector carbon emissions by as much as 14 percent by 2020, saving $15 billion to $35 billion in energy and fuel costs.* This will reduce the country’s reliance on fossil fuels, including imported oil, contributing to our energy independence and lessening our entanglement with foreign, oil-producing regimes. AT&T supports a consensus-based approach to developing smart grid standards. Standards for smart grid equipment and devices should be based on an open network-layer standard, such as Internet Protocol, in order to promote interoperability and reduce costs. This will ensure that different types of network technologies can be employed most efficiently, while also making the benefits of smart grid technology widely available. Updating the country's power grid can drive greater energy efficiencies in a number of ways. For one, consumers can make smarter decisions about energy consumption, avoiding use during peak demand periods, which will reduce costs. At the same time, energy providers will be able to even out costly spikes in demand. Utilities will also be able to better monitor power quality, detect weak spots in the grid, integrate renewable energy sources into their operations and isolate problems. All of this adds up to higher quality, more efficient power and faster restoration when there are power outages. A smarter grid also permits power companies to be smarter about acquiring excess energy from consumers and businesses, so that they don't have to invest as heavily in backup power, potentially reducing the need to build additional power generation facilities. Finally, this two-way flow of information can help optimize the grid as electric vehicles become more prevalent. This smart grid model ultimately helps consumers understand the economics of their consumption patterns so they can make intelligent decisions about their energy use. It also helps to enhance reliability and energy efficiency, lower power-line losses and provide utilities with the ability to remotely automate service.

Encouraging Greater Use of Telecommuting We were supportive of legislation that the President signed into law in 2010 regarding telecommuting by the federal work force. More generally, in the past we have filed comments with the Federal Communications Commission to encourage greater use of telecommuting as a means to reduce greenhouse gas emissions – and expand the potential for economic growth. We provide our customers with a variety of technology solutions to help reduce travel and improve the potential for their employees to work virtually anywhere and anytime. Learn more In particular, we recently contracted with the Government Services Administration to provide 15 Telepresence suites spread across the agency’s offices nationwide. These facilities have the potential to increase the efficiency and reduce the carbon footprint of GSA, as well as other federal agencies that have the opportunity to use them. * Smart2020: United States Report Addendum, Global e-Sustainability Initiative, 2008.

Page: 3. Targets and Initiatives

3.1

Did you have an emissions reduction target that was active (ongoing or reached completion) in the reporting year? YES NO

3.1a

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Please provide details of your absolute target

ID

Scope

% of emissions in

scope

% reduction from base year

Base year

Base year emissions

(metric tonnes CO2e)

Target year

Comment

3.1b

Please provide details of your intensity target

ID

Scope

% of emissions in scope

% reduction from base year

Metric

Base year

Base year emissions

(metric tonnes CO2e)

Target year

Comment

3.1c

Please also indicate what change in absolute emissions this intensity target reflects

ID

Direction of change anticipated in absolute Scope 1+2 emissions at

target completion?

% change anticipated in absolute Scope 1+2

emissions

Direction of change anticipated in absolute Scope 3 emissions at target

completion?

% change anticipated in absolute Scope 3

emissions

Comments

3.1d

Please provide details on your progress against this target made in the reporting year

ID

% complete (time)

% complete (emissions)

Comment

3.1e

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Please explain (i) why not; and (ii) forecast how your emissions will change over the next five years

We know that our electricity use and our fleet are our two biggest drivers of emissions, and we have set goals related to both and established initiatives to help us meet those goals. For energy, we have established an intensity metric to track and measure our electricity usage as related to our growth in terms of the total amount of information transmitted over our network, including our global network, voice and video traffic. For 2011, we set a goal to reduce the electricity consumption of our company relative to data growth on our network by 17 percent as compared with year 2010. To help us meet this goal, our energy director and his team work to implement energy-savings projects and explore alternative energy options. In 2010, we used 415 kWh per terabyte of data carried on our network, which is a 16.6 percent decrease from 2009. We implemented 4,200 energy-saving projects, which resulted in an annualized energy savings of 443 million kWh, which equates to $44million.

For our fleet, in March 2009, we announced plans to invest up to $565 million as part of a long-term strategy to deploy approximately 15,000 alternative-fuel vehicles through the end of 2018. Our goal for 2011 is to continue progress to replace eligible retiring passenger vehicles with alternative fuel vehicles and deploy up to 8,000 CNG service vehicles by EOY 2013. By the end of 2010, AT&T had deployed 3,487 AFVs, including 2,472 CNG vehicles and 1,013 hybrid electric vehicles. AT&T has also deployed two all-electric vehicles (AEVs). The use of compressed natural gas (CNG) vehicles in our corporate vehicle fleet helped the company avoid the purchase of more than one million gallons of traditional petroleum fuel in 2010. As demand for our products and services increases, the amount of energy needed to carry data over the network will increase. In fact, mobile broadband on AT&T’s network has grown nearly 2,300 percent over the past three years. Despite this fact, however, our efficiency efforts have made it such that our overall emissions remain fairly steady. We will continue these efforts in the coming years. * In addition to our Energy Intensity goal, which addresses our Scope 2 emissions, we have established an absolute reduction goal for our Scope 1 emissions. We have in 2011 set a goal to reduce our Scope 1 emissions by 10% by 2020, using our 2008 Scope 1 baseline of 1,248,017 metric tons of C02-e (note that this number has been adjusted from our original 2008 disclosure to include refrigerants).

3.2

Does the use of your goods and/or services directly enable GHG emissions to be avoided by a third party? YES NO

3.2a

Please provide details (see guidance)

Information and Communication Technology (ICT) solutions – comprising hardware, software and broadband technologies – have the ability to enable people and businesses to make more energy-efficient choices and reduce environmental impact and costs by: • Moving work to people rather than people to work

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• Connecting rather than traveling • Managing business remotely and in real time • Improving transportation and distribution systems According to projections in the 2008 Global e-Sustainability Initiative (GeSI) Smart 2020 report, ICT-enabled solutions could cut annual CO2 emissions in the U.S. by up to 22 percent in year 2020. This translates to a gross energy and fuel cost savings of as much as $140 billion to $240 billion annually. *SMART 2020: Enabling the Low Carbon Economy in the Information Age, Global e-Sustainability Initiative and Boston Consulting, pg. 6. Here are some ways that our global network helps users operate more sustainably: Telepresence

AT&T Telepresence Solution® lets the users collaborate with people across the globe as if they were in the same room. With its "real-size" ultra-high-definition video, CD-quality audio, interactive technologies and a specially designed environment you can easily see every raised eyebrow and hear every sigh. When someone on the left side of the table speaks, you hear the sound on your left. In 2010, AT&T sponsored a study by Carbon Disclosure Project (CDP) produced by Verdantix, an independent analyst research firm to examine the financial and environmental benefits offered by Telepresence. The study called ―The Telepresence Revolution‖ found significant global environmental and financial benefits for businesses that deploy telepresence. According to the study by 2020, U.S. and U.K. businesses with revenues over $1 billion can cut nearly 5.5 million metric tons of CO2 emissions (4.6 million metric tons CO2 in the U.S.; 940,000 metric tons CO2 in the U.K.) by using the technology to avoid some travel. This is the greenhouse gas equivalent of removing more than one million passenger vehicles from the road for one year. Over the same period, those U.S. and U.K. businesses can also achieve economy-wide financial benefits of almost $19 billion ($15b in the U.S.; nearly $4b in the U.K.) by substituting telepresence for some business travel. Since introducing its AT&T Telepresence Solution in 2008, AT&T’s own use of the technology has been skyrocketing. AT&T has more than doubled its internal deployment in 2010 from 50 rooms to more than 130 rooms. The company has realized savings of more than $4.1 million in travel dollars and more than 2,500 metric tons of CO2 emissions avoided in 2010. Smarter Energy Grids

Smart energy grids allow for two-way communication between the energy provider and sensing, monitoring and measuring end points on the electric grid, including meters at the home or business. This could enable more efficient energy use, which impacts emissions. As of fall 2010, AT&T provided the communication for 7.5 million smart meters. Teleworking

Telecommuting, which is defined as working from a home office, is one of the most promising opportunities for businesses to cut carbon emissions, and it offers a variety of benefits for both companies and employees. Driving Smarter

Along with our business alliance members, we offer dozens of vehicle-based solutions that combine the latest advances in GPS, wireless and Web technologies to make mobile workforce and fleet management a more affordable reality. These solutions can lead to reduced idle time, better management of miles driven per day, improved route planning, and reduced travel time and costs. AT&T's technician vehicles are equipped with similar solutions. For our company, these products provide: • Better management of miles driven per day by technicians • Improved processes in place for vehicle returns to the work center • Improved inventory management • Reduced travel time and costs with real-time dispatching

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Operating Smarter

By 2020, data centers could surpass the airline industry in GHG emissions, according to a data center study released in 2009 by the U.S. Environmental Protection Agency. AT&T helps businesses build and operate their IT infrastructure more efficiently – lowering the cost of doing business. Current trends toward the adoption of hosted services (e.g., outsourcing and cloud computing), server and storage virtualization and low-energy cooling as a means to replace less-efficient data centers and application services have great potential to increase IT and data center efficiency.

3.3

Did you have emissions reduction initiatives that were active within the reporting year (this can include those in the planning and/or implementation phases) YES NO

3.3a

Please provide details in the table below

Activity type

Description of activity

Annual monetary savings (unit

currency)

Investment required (unit

currency)

Payback period

BEHAVIOR CHANGE ENERGY EFFICIENCY: BUILDING FABRIC

ENERGY EFFICIENCY: BUILDING SERVICES ENERGY EFFICIENCY: PROCESSESS FUGITIVE EMISSIONS REDUCTIONS

LOW CARBON ENERGY INSTALLATION LOW CARBON ENERGY PURCHASE PROCESS EMISSIONS REDUCTIONS

PRODUCT DESIGN TRANSPORTATION: FLEET TRANSPORTATION: USE

OTHER

In 2010 we voluntarily implemented 4,200 energy

efficiency projects that include facility, processes and building

services. This resulted in energy savings of approximately 443

million kWh in annualized energy savings in 2010. This

was part of a new energy program, headed by our Energy Director, who was appointed in

2009. He will continue to oversee energy-savings efforts

into the next year.

$44 million -- <1 YEAR

1-3 YEARS >3 YEARS

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OTHER

Implemented an Energy Scorecard at each of our 500

largest energy-consuming facilities. Quarterly, the Energy

Team – headed by AT&T’s Energy Director – reviews

performance and gives each real estate managers a score for her or his efforts, determined by

variables such as projects, savings, electricity usage and

training. In 2010, scores improved by 58% compared to

2009. The results have also been incorporated into the

annual performance objectives for real estate managers. This

was part of a new energy program, headed by our Energy Director, who was appointed in

2009. He will continue to oversee energy-savings efforts

into the next year.

Unable to calculate Unable to calculate

<1 YEAR 1-3 YEARS >3 YEARS

N/A





OTHER

Deployment of AFVs - In 2009, we announced plans to invest up to $565 million to deploy

approximately 15,000 alternative-fuel vehicles (AFVs)

through 2018. By the end of 2010, AT&T had deployed 3,487

AFVs, including 2,472 CNG vehicles and 1,013 hybrid

electric vehicles. AT&T has also deployed two all-electric

vehicles (AEV). The use of compressed natural gas (CNG) vehicles in our corporate vehicle fleet helped the company avoid the purchase of more than one

million gallons of traditional petroleum fuel in 2010.

-- $565 million over

10 years


N/A

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OTHER

In 2010, our third solar system was installed at one of our data centers in San Diego. The 262

kW system will produce 444,000 kWh of electricity per year. We

also contracted for 19 additional systems at 16 sites to be

installed in the coming year- five in California and 11 in New

Jersey.

-- --






OTHER

We continued our involvement with Austin Energy's

GreenChoice renewable energy program through which we purchase wind power for 10

percent of our electricity consumption in all AT&T

facilities in Austin, Texas. This effort will help us avoid 7.2

million kWh of fossil-generated electricity each year.

-- --






OTHER

To address business-related travel emissions, AT&T has

more than doubled its internal deployment of Telepresence

from 50 rooms in 2009 to more than 130 rooms at the end of 2010. The company realized

savings of more than $4.1 million in travel dollars and more than 2,500 metric tons of CO2-e

emissions avoided in 2010.

$4.1 million

AT&T does not disclose its public spend, but a study we sponsored with

the Carbon Disclosure Project

and Verdantix found that a large

business could achieve payback of its investment in as little as 15 months.


3.3b

What methods do you use to drive investment in emissions reduction activities?

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Method

Comment

COMPLIANCE WITH REGULATORY REQUIREMENTS/STANDARDS

DEDICATED BUDGET FOR ENERGY EFFICIENCY

DEDICATED BUDGET FOR LOW CARBON PRODUCT R&D

DEDICATED BUDGET FOR OTHER CARBON REDUCTION ACTIVIES

EMPLOYEE ENGAGEMENT FINANCIAL OPTIMIZATION

CALCULATIONS INTERNAL PRICE OF CARBON

INTERNAL INCENTIVES/RECOGNITION PROGRAMS

INTERNAL FINANCE MECHANISMS LOWER RETURN ON INVESTMENT (ROI)

SPECIFICATION MARGINAL ABATEMENT COST CURVE PARTNERING WITH GOVERMENTS ON

TECHNOLOGY DEVELOPMENT OTHER

The Energy Director and team are allocated a budget to implement energy

efficiency initiatives.

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We have developed and implemented an Energy Scorecard to benchmark the

energy performance at each of our 500 largest energy-consuming facilities in

2010. The scorecard tracks energy management in each of these facilities

and we use this information to set goals for each facility. Quarterly, the Energy

Team — headed by AT&T's Energy Director — reviews performance and

gives each real estate manager a score for her or his efforts, determined by variables such as projects, savings,

electricity usage and training. In 2010, scores improved by 58% compared to

2009. The results have also been incorporated into the annual performance

objectives for real estate managers.











We have a comprehensive employee engagement program to make our

sustainability communication relevant, frequent and easily accessible. Our goal

is to communicate with our employees on a regular basis and involve them on a personal and professional level. A key component of our commitment is an

employee Web site specifically focused on our environmental sustainability efforts called EcoSystem. They also

receive regular communications from the sustainability team about initiatives

underway and what they can do as well, and we work to promote sustainable

practices such as printing on both sides to turning off the lights when not in a

room.

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We collaborate with others in the industry to develop more efficient products. We are involved in the Green Grid, a global

consortium dedicated to advancing energy efficiency in data centers and

business computing ecosystems. We are also a member and Chairman of the

Board of Directors of the Alliance for Telecommunication Industry Solutions

(ATIS), the North American telecommunications standards

development organization, which is working to establish a methodology for

measuring and reporting the energy efficiency of telecommunications

equipment.

3.3c

If you do not have any emissions reduction initiatives, please explain why not

Page: 4. Communication

4.1

Have you published information about your company’s response to climate change and GHG emissions performance for this reporting year in other places than in your CDP response? If so, please attach the publication(s)

Publication

Page/Section Reference

Identify the attachment

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NO IN ANNUAL REPORTS (COMPLETE)

IN ANNUAL REPORTS (UNDERWAY) –PREVIOUS YR ATTCHD

IN ANNUAL REPORTS (UNDERWAY) – FIRST YEAR

IN OTHER REGULATORY FILINGS (COMPLETE)

IN OTHER REGULATROY FILINGS (UNDERWAY) – PREVIOUS YR ATTCHD

IN OTHER REGUILATORY FILINGS (UNDERWAY) – FIRST YEAR

IN VOLUNTARY COMMUNICATIONS (COMPLETE)

IN VOLUNTARY COMMUNICATIONS (UNDERWAY) – PREVIOUS YR ATTCHD

IN VOLUNTARY COMMUNICATIONS (UNDERWAY) – FIRST YEAR

AT&T’s 2010 Sustainability

Information online -

www.att.com/environment Under Greenhouse Gas

emissions

ADD FILE NAME OF SCREENSHOT OF ATT.COM/CSR

Module: Risks and Opportunities [Investor]

Page: 5. Climate Change Risks

5.1

Have you identified any climate change risks (current or future) that have potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply

RISKS DRIVEN BY CHANGES IN REGULATION RISKS DRIVEN BY CHANGES IN PHSYICAL CLIMATE PARAMETERS RISKS DRIVEN BY CHANGES IN OTHER CLIMATE-RELATED DEVELOPMENTS

5.1a

Please describe your risks driven by changes in regulation

http://www.att.com/environment

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ID

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

-INTERNATIONAL AGREENMENTS -AIR POLLUTION

LIMITS -CARBON TAXES -CAP AND TRADE

SCHEMES -EMISSIONS REPORTING

OBLIGATIONS -FUEL/ENERGY

TAXES AND REGULATIONS

-PRODUCT EFFICIENCY

REGULATIONS AND STANDARDS

-PRODUCT LABELING


-VOLUNTARY AGREEMENTS

-GENERAL ENVIRONMENTAL

REGULATIONS, INCLUDING PLANNING

-UNCERTAINTY SURROUNDING

NEW REGULATION -LACK OF

REGULATION -OTHER

REGULATORY DRIVERS

AT&T operates one of the

largest corporate fleets in the

nation. Therefore, we

are impacted by fuel prices. We also demand

energy to power the network and our operations.

While we are making

improvements in the efficiency of our operations

and fleet, fuel/energy taxes and regulations

impact our company.

-INCREASED OPERATIONAL COST -INCREASED CAPITAL

COST -REDUCED DEMAND FOR

GOODS/SERVICES -

REDUCTION/DISTRUPTION IN PRODUCTION

CAPACITY -REDUCTION IN CAPITAL

AVAILABILITY -REDUCED STOCK PRICE

(MARKET VALUATION) -INABILITY TO DO

BUSINESS -WIDER SOCIAL DISADVANAGES

-OTHER

CURRENT

1-5 YEARS

6-10 YEARS

<10 YEARS

UNKNOWN

DIRECT

INDIRECT (SUPPLY CHAIN)

INDIRECT (CLIENT)

VIRTUALLY CERTAIN

VERY LIKELY

LIKELY

MORE LIKELY THAN NOT

AS LIKELY AS

NOT

UNLIKELY

VERY UNLIKELY

EXCEPTIONALLY UNLIKELY

UNKNOWN

HIGH

MEDIUM-HIGH

MEDIUM

LOW-MEDIUM

LOW

UNKNOWN

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5.1b

Please describe (i) the potential financial implications of the risk before taking action; (ii) the methods you are using to manage this risk; and (iii) the costs associated with these actions

It’s difficult to determine the exact implications of the risk before taking action, but there are financial implications associated with increased energy use. For fluctuations in our energy use due to volatile temperatures, we’re taking steps to manage our energy use. IN 2010 we implemented 4,200 energy efficiency projects that include facility, processes and building services. These efforts resulted in an annualized energy savings of $44 million and approximately 443 million kWh in annualized energy savings in 2010. We’re also working to operate a more efficient fleet. In 2009, we announced plans to invest up to $565 million to deploy approximately 15,000 alternative-fuel vehicles (AFVs) through 2018. By the end of 2010, AT&T had deployed 3,487 AFVs, including 2,472 CNG vehicles and 1,013 hybrid electric vehicles.

5.1c

Please describe your risks that are driven by change in physical climate parameters

ID

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

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-CHANGE IN MEAN (AVERAGE)

TEMPERATURES -CHANGE IN

TEMPERATURE EXTREMES


PRECIPITATION -CHANGE IN

PRECIPITATION PATTERN

-CHANGE IN PRECIPITATION EXTREMES AND

DROUGHTS -SNOW AND ICE

-SEA LEVEL RISE -TROPICAL CYCLONES -INDUCED

CHANGES IN NATURAL

RESOURCES -UNCERTAINTY OF PHYSICAL RISKS

-OTHER PHYSICAL CLIMATE DRIVERS

Fluctuations in temperatures make it difficult to predict energy needs for the

year. In addition, this sometimes

causes increased stress on the

electricity grid, which forces AT&T to run its engines more, releasing

more GHG emissions.

INCREASED OPERATIONAL COST

INCREASED CAPITAL

COST

REDUCED DEMAND FOR GOOD/SERVICE

REDUCTION/DISTRUPTION

IN PRODUCTION CAPACITY

REDUCTION IN CAPITAL

AVAILABILITY

REDUCED STOCK MARKET (MARKET

VALUATION)

INABILITY TO DO BUSINESS

WIDER SOCIAL

DISADVANTAGES

OTHER

CURRENT

1-5 YEARS

6-10 YEARS

<10 YEARS

UNKNOWN

DIRECT


INDIRECT (CLIENT)

VIRTUALLY CERTAIN

VERY LIKELY

LIKELY


AS LIKELY AS

NOT

UNLIKELY

VERY UNLIKELY


UNKNOWN

HIGH

MEDIUM-HIGH

MEDIUM

LOW-

MEDIUM

LOW

UNKNOWN

22

22

CHANGE IN MEAN (AVERAGE)









CHANGES IN NATURAL



Changes in temperature

extremes have an impact on our

energy use. Every time AT&T ramps up

cooling or heating systems quickly, it takes more energy than if the systems remained steady or

increased/decreased incrementally. In

addition, temperature

extremes cause increased stress on the electricity grid, which forces AT&T to run its engines more, releasing

more GHG emissions.


INCREASED CAPITAL

COST





AVAILABILITY


VALUATION)


WIDER SOCIAL

DISADVANTAGES

OTHER

CURRENT

1-5 YEARS

6-10 YEARS

<10 YEARS

UNKNOWN

DIRECT


INDIRECT (CLIENT)

VIRTUALLY CERTAIN

VERY LIKELY

LIKELY


AS LIKELY AS

NOT

UNLIKELY

VERY UNLIKELY


UNKNOWN

HIGH

MEDIUM-HIGH

MEDIUM

LOW-

MEDIUM

LOW

UNKNOWN

23

23










CHANGES IN NATURAL



Our business relies on providing

communications services to our

customers. Extreme winter storms can

impact infrastructure,

interrupting AT&T’s to provide service to those who depend

on it.


INCREASED CAPITAL

COST





AVAILABILITY


VALUATION)


WIDER SOCIAL

DISADVANTAGES

OTHER

CURRENT

1-5 YEARS

6-10 YEARS

<10 YEARS

UNKNOWN

DIRECT


INDIRECT (CLIENT)

VIRTUALLY CERTAIN

VERY LIKELY

LIKELY


AS LIKELY AS

NOT

UNLIKELY

VERY UNLIKELY


UNKNOWN

HIGH

MEDIUM-HIGH

MEDIUM

LOW-

MEDIUM

LOW

UNKNOWN

24

24










CHANGES IN NATURAL



Our business relies on providing

communications services to our

customers. Extreme weather can impact

infrastructure, interrupting AT&T’s

ability to provide service to those who

depend on it.


INCREASED CAPITAL

COST





AVAILABILITY


VALUATION)


WIDER SOCIAL

DISADVANTAGES

OTHER

CURRENT

1-5 YEARS

6-10 YEARS

<10 YEARS

UNKNOWN

DIRECT


INDIRECT (CLIENT)

VIRTUALLY CERTAIN

VERY LIKELY

LIKELY


AS LIKELY AS

NOT

UNLIKELY

VERY UNLIKELY


UNKNOWN

HIGH

MEDIUM-HIGH

MEDIUM

LOW-

MEDIUM

LOW

UNKNOWN

25

25

-CHANGE IN MEAN

(AVERAGE)

TEMPERATURES

-CHANGE IN

TEMPERATURE

EXTREMES

-CHANGE IN MEAN

(AVERAGE)

PRECIPITATION

-CHANGE IN

PRECIPITATION

PATTERN

-CHANGE IN

PRECIPITATION

EXTREMES AND

DROUGHTS

-SNOW AND ICE

-SEA LEVEL RISE

-TROPICAL

CYCLONES

-INDUCED

CHANGES IN

NATURAL

RESOURCES

-UNCERTAINTY OF

PHYSICAL RISKS

-OTHER PHYSICAL

CLIMATE DRIVERS

Physical impacts

that affect our

suppliers indirectly

could impact our

company.

INCREASED

OPERATIONAL COST

INCREASED CAPITAL

COST

REDUCED DEMAND FOR

GOOD/SERVICE


IN PRODUCTION

CAPACITY


AVAILABILITY

REDUCED STOCK

MARKET (MARKET

VALUATION)

INABILITY TO DO

BUSINESS

WIDER SOCIAL

DISADVANTAGES

CURRENT

1-5 YEARS

6-10 YEARS

<10 YEARS

UNKNOWN

DIRECT

INDIRECT

(SUPPLY

CHAIN)

INDIRECT

(CLIENT)

VIRTUALLY

CERTAIN

VERY LIKELY

LIKELY

MORE LIKELY

THAN NOT

AS LIKELY AS

NOT

UNLIKELY

VERY UNLIKELY

EXCEPTIONALLY

UNLIKELY

UNKNOWN

HIGH

MEDIUM-

HIGH

MEDIUM

LOW-

MEDIUM

LOW

UNKNOWN

26

26

5.1d

Please describe (i) the potential financial implications of the risk before taking action; (ii) the methods you are using to manage this risk; and (iii) the costs associated with these actions In the event of a disruption in service AT&T must expend resources to repair damaged infrastructure and issue credits for service disruptions. Extreme weather threatens the network and supporting infrastructure we depend on to deliver service to our customers. To protect against disruptions, we invested more than $600 million in 2010 our Network Disaster Recovery (NDR) program, which includes a fleet of more than 320 technology and support trailers and specialized equipment that can be quickly deployed anywhere in the world in response to natural or man-made disasters. Through AT&T's NDR organization, we bring resources to help ensure the flow of both wireless and wired communications during times of need, all backed by centralized command and control designed to ensure maximum effectiveness and efficiency. For fluctuations in our energy use due to volatile temperatures, AT&T is taking steps to manage its energy use. In 2010 AT&T implemented 4,200 energy efficiency projects that include facility, processes and building services. This resulted in energy savings of approximately 443 million kWh in annualized energy savings in 2010. To address supply chain related challenges, AT&T joined the Carbon Disclosure Project (CDP) Supply Chain 2011 Greenhouse Gas (GHG) initiative as a full member to assist in collecting and analyzing information about our suppliers’ greenhouse gas management programs. This complements AT&T’s annual Supplier Citizenship and Sustainability (C&S) survey. AT&T is teaming with CDP to: • Deepen engagement with AT&T’s suppliers regarding greenhouse gas (GHG) programs. • Assess the level of awareness and maturity of AT&T’s suppliers regarding GHG tracking. • Establish a baseline that AT&T can use to plan future GHG supplier performance measures. • Align with AT&T Corporate C&S objectives and AT&T’s Principles of Conduct for Suppliers AT&T is engaging about 500 major suppliers from its supply chain to participate in the CDP 2011 Supplier Information Request, which is a set of online questions about each supplier’s level of awareness and actions regarding greenhouse gas emissions management.

5.1e

Please describe your risks that are driven by changes in other climate-related developments

ID

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

27

27

REPUTATION CHANING

CONSUMER BEHAVIOR

INDUCED CHANGES IN HUMAN AND

CULTURAL ENVIRONMENT FLUCTUATING

SOCIO-ECONOMIC CONDITIONS INCREASING

HUMANITARIAN DEMANDS

UNCERTAINTY IN SOCIAL DRIVERS UNCERTAINTY IN

MARKET SIGNALS OTHER DRIVERS

Volatile cost of fuel and energy, caused by market fluctuations

outside of regulation

INCREASED OPERATIONAL

COST

INCREASED CAPITAL COST

REDUCED

DEMAND FOR GOOD/SERVIC

E


CAPACITY


AVAILABILITY

REDUCED STOCK

MARKET (MARKET

VALUATION)


WIDER SOCIAL DISADVANTAG

ES

OTHER

CURRENT

1-5 YEARS

6-10 YEARS

<10 YEARS

UNKNOWN

DIRECT


INDIRECT (CLIENT)

VIRTUALLY CERTAIN

VERY LIKELY

LIKELY


AS LIKELY AS

NOT

UNLIKELY

VERY UNLIKELY

EXCEPTIONALL

Y UNLIKELY

UNKNOWN

HIGH

MEDIUM-HIGH

MEDIUM

LOW-

MEDIUM

LOW

UNKNOWN

28

28

-REPUTATION -CHANGING CONSUMER BEHAVIOR

-INDUCED CHANGES IN HUMAN AND

CULTURAL ENVIRONMENT -FLUCTUATING

SOCIO-ECONOMIC CONDITIONS -INCREASING


-UNCERTAINTY IN SOCIAL DRIVERS -UNCERTAINTY IN MARKET SIGNALS -OTHER DRIVERS

Several stakeholders, including customers, employees, policy makers, investors, non-governmental organizations are expecting more from companies in the sustainability sphere. We communicate our sustainability efforts through a wide-range of outlets, such as an annual sustainability report, a sustainability website, the media, conferences and events and in direct communications. We also reply to several surveys from investors and rankings.


COST


REDUCED


E


CAPACITY


AVAILABILITY

REDUCED STOCK

MARKET (MARKET

VALUATION)



ES

OTHER

CURRENT

1-5 YEARS

6-10 YEARS

<10 YEARS

UNKNOWN

DIRECT


INDIRECT (CLIENT)

VIRTUALLY CERTAIN

VERY LIKELY

LIKELY


AS LIKELY AS

NOT

UNLIKELY

VERY UNLIKELY

EXCEPTIONALL

Y UNLIKELY

UNKNOWN

HIGH

MEDIUM-HIGH

MEDIUM

LOW-

MEDIUM

LOW

UNKNOWN

29

29

-REPUTATION -CHANGING CONSUMER BEHAVIOR

-INDUCED CHANGES IN HUMAN AND

CULTURAL ENVIRONMENT -FLUCTUATING

SOCIO-ECONOMIC CONDITIONS -INCREASING


-UNCERTAINTY IN SOCIAL DRIVERS -UNCERTAINTY IN MARKET SIGNALS -OTHER DRIVERS

Customers are becoming better educated and aware about the sustainable attributes of the products they consume.

In response, we made two specific product launches in 2010 aimed at environmentally conscious consumers.

We worked with Superior Communications to issue the AT&T ZERO Charger, the first automatic zero-draw charger that doesn't waste power when it's left plugged into a wall. Such "vampire" energy from mobile phone chargers can add up — enough to brew 3 million cups of coffee each day

1. Our customers

want to be a small part of a big difference, and the charger was one of our best-selling accessories in 2010. It also received the 2010 CTIA E-Tech Award for Green Solutions.

And in November 2010, we announced the launch of the Samsung Evergreen, a quick-messaging device whose casing is made of 70 percent post-consumer waste recycled plastic. The phone's packaging uses 80 percent post-consumer recycled paper and soy ink for printing, and a CD replaces the traditional paper guide. The phone meets EU RoHS standards and is free of PVC, BFR and beryllium.


COST


REDUCED


E


CAPACITY


AVAILABILITY

REDUCED STOCK

MARKET (MARKET

VALUATION)



ES

OTHER

CURRENT

1-5 YEARS

6-10 YEARS

<10 YEARS

UNKNOWN

DIRECT


INDIRECT (CLIENT)

VIRTUALLY CERTAIN

VERY LIKELY

LIKELY


AS LIKELY AS

NOT

UNLIKELY

VERY UNLIKELY

EXCEPTIONALL

Y UNLIKELY

UNKNOWN

HIGH

MEDIUM-HIGH

MEDIUM

LOW-

MEDIUM

LOW

UNKNOWN

30

30

5.1f

Please describe (i) the potential financial implications of the risk before taking action; (ii) the methods you are using to manage this risk; (iii) the costs associated with these actions

Aside from any costs imposed by regulations, increases in the cost of energy and fuel pose a financial risk to our business. Because electricity and fuel are key inputs to the connectivity services that AT&T provides, our cost structure is impacted by rising energy costs. We operate one of the largest commercial fleets in the nation, making us susceptible to volatile fuel prices. To address these issues, we’re investing to optimize the energy performance of our network and facilities and have invested in fuel-saving technologies to help us operate our fleet more efficiently and cost effectively. In 2009, we announced plans to invest up to $565 million to deploy approximately 15,000 alternative-fuel vehicles (AFVs) through 2018. By the end of 2010, AT&T had deployed 3,487 AFVs, including 2,472 CNG vehicles and 1,013 hybrid electric vehicles.

5.1g

Please explain why you do not consider your company to be exposed to risks driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure

5.1h

Please explain why you do not consider your company to be exposed to risks driven by physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure

5.1i

Please explain why you do not consider your company to be exposed to risks driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure

Page: 6. Climate Change Opportunities

6.1

31

31

Have you identified any climate change opportunities (current or future) that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply

OPPORTUNITIES DRIVEN BY CHANGES IN REGULATION OPPORTUNITIES DRIVEN BY CHANGES IN PHSYICAL CLIMATE PARAMETERS OPPORTUNITIES DRIVEN BY CHANGES IN OTHER CLIMATE-RELATED DEVELOPMENTS

6.1a

Please describe your opportunities that are driven by changes in regulation

ID

Opportunity driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of

impact

32

32

-INTERNATIONAL AGREEMENTS

-AIR POLLUTION LIMITS -CARBON TAXES -CAP AND TRADE

SCHEMES -EMISSIONS REPORTING

OBLIGATIONS -FUEL/ENERGY TAXES

AND REGULATIONS -PRODUCT EFFICIENCY


-PRODUCT LABELING REGULATIONS AND

STANDARDS -VOLUNTARY AGREEMENTS

-GENERAL ENVIRONMENTAL

REGULATIONS, INCLUDING PLANNING -OTHER REGULATORY

DRIVERS

AT&T is one of the largest U.S. wireless providers of fleet management solutions for commercial truck and van fleets. Along with

our business alliance members, we offer many vehicle-based solutions that combine the latest advances in GPS, wireless and

Web technologies to make mobile workforce and fleet management a more

affordable reality. These solutions can lead to reduced idle time, better management of

miles driven per day, improved route planning, and reduced travel time.

If travel becomes more expensive due to fuel increases, AT&T also offers several products and services that help business and individuals reduce their travel. AT&T Telepresence Solution® offers a lifelike

experience of being in the same room as the other people. AT&T offers connectivity that also allows people to work remotely,

reducing the need to travel into their workplace.

In addition, AT&T helps businesses build and operate their IT infrastructure more

efficiently. Current trends toward the adoption of hosted services (e.g.,

outsourcing and cloud computing), server and storage virtualization and low-energy

cooling as a means to replace less-efficient data centers and application services have

great potential to increase IT and data center efficiency.

AT&T is also AT&T is helping modernize the nation's electric grid by combining the

same broadband and wireless communication technology we use to

connect people with their world every day with additional virtual networking and

security features. Smart grids depend on two-way communications between virtually

all devices producing, distributing and consuming electricity. As of fall 2010, AT&T provided the communication for 7.5 million smart meters. AT&T has teamed up with

several companies to provide this two-way connectivity.

-REDUCED OPERATIONAL

COSTS

-REDUCED CAPITAL COSTS

-INCREASED DEMAND FOR

EXISTING PRODUCTS

AND SERVICES

-PREMIUM

PRICE OPPORTUNITI

ES

-INCREASED PRODUCTION

CAPACITY

-INCREASE IN CAPITAL

AVAILABILITY

-INCREASED STOCK PRICE

(MARKET VALUATION)

-NEW

PRODUCTS/BUSINESS

SERVICES

-INVESTMENT OPPORTUNITI

ES

-WIDER SOCIAL

BENEFITS -OTHER

CURRENT

1-5 YEARS

6-10 YEARS

>10 YEARS

UNKNOWN

DIRECT


INDIRECT (CLIENT)

VIRTUALLY CERTAIN

VERY LIKELY

LIKELY


AS LIKELY AS

NOT

UNLIKELY

VERY UNLIKELY


UNKNOWN

HIGH

MEDIUM-HIGH

MEDIUM

LOW-

MEDIUM

LOW

UNKNOWN

33

33

6.1b

Please describe (i) the potential financial implications of the opportunity; (ii) the methods you are using to manage this opportunity; (iii) the costs associated with these actions

AT&T provides several products and services – from fleet management to smart grid to cloud computing and virtualization – that can enable others to reduce their travel and energy use. Increased use of these products and services would lead to increased revenue for AT&T. We set two goals in 2010 to guide our efforts in promoting these products and services. They were to 1) launch customer tools to quantify carbon emissions avoided from use of specific offerings that reduce travel and 2) establish external advisory board to promote ICT as a sustainability enabler, and develop measurements for the environmental impact of ICT products and services. In 2010, significant progress was made on the alpha and beta versions of the customer tool in 2010; however we encountered process delays that pushed our release date for the tool to 2nd Quarter of 2011. In late 2009, we established the AT&T Business Sustainability Advisory Council. The Council met twice in 2010 and is planning to meet twice in 2011 to continue work on initiatives from 2010, which include methodology and research that supports the measurement tools to calculate environmental impacts of ICT technology travel substitution solutions. We have also set a goal for 2011 to introduce methodology and research that supports the measurement tools used to calculate the environmental impacts of information and communications technology travel substitution solutions. The exact financial implications and costs of pursuing these opportunities are unclear.

6.1c

Please describe the opportunities that are driven by changes in physical climate parameters

ID

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

34

34

-CHANGE IN MEAN

(AVERAGE) TEMPERATURE

-CHANGE IN TEMPERATURE

EXTREMES -CHANGE IN

MEAN (AVERAGE)



-CHANGE IN PRECIPITATION

EXTREMES AND

DROUGHTS -SNOW AND

ICE -INTRODUCED CHANGES IN

NATURAL RESROUCES


Physical risks – associated with weather, a pandemic, or otherwise – often require collaboration in state and local government sectors. Collaboration allows agencies to maintain the understanding of local, state and national news and events. AT&T offers products and services that can assist this collaboration across geographies. AT&T Telepresence Solution® connects individuals physically separated across a building, city, state or nation serving as the medium for planning, response and recovery actions. Supporting public safety efforts such as disaster and pandemic response or carrying out essential training and events, AT&T Telepresence Solution allows individuals to still see eye-to-eye when actual face-to-face communication is not possible. Implementation of AT&T Telepresence Solution at local, state and national agencies will allow timely and efficient collaboration to keep agencies and communities connected when time matters most.


COSTS


-INCREASED DEMAND

FOR EXISTING PRODUCTS AND

SERVICES

-PREMIUM PRICE OPPORTUNITIES


CAPACITY


AVAILABILITY

-INCREASED STOCK PRICE (MARKET

VALUATION)

-NEW PRODUCTS/BUSINES

S SERVICES

-INVESTMENT OPPORTUNITIES

-WIDER SOCIAL

BENEFITS -OTHER

CURRENT

1-5 YEARS

6-10 YEARS

>10 YEARS

UNKNOWN

DIRECT


INDIRECT (CLIENT)

VIRTUALLY CERTAIN

VERY LIKELY

LIKELY


AS LIKELY AS

NOT

UNLIKELY

VERY UNLIKELY


UNKNOWN

HIGH

MEDIUM-HIGH

MEDIUM

LOW-

MEDIUM

LOW

UNKNOWN

6.1d


35

35

We engage our stakeholders – such as our government customers – through a variety of avenues to assess opportunity in this area. AT&T outlines our State and Local Government Solutions online at www.corp.att.com/stateandlocal/unified_communications.html. AT&T also has compiled a Telepresence Solution Handbook, When Time Matters Most: A State and Local Government Guide to Staying Connected in Times of Crisis.” It outlines various scenarios related to crisis situations and recommends ways that AT&T can help.

The exact costs and financial implications of these opportunities are unclear.

6.1e

Please describe the opportunities that are driven by changes in other climate-related developments

ID

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of

impact

http://www.corp.att.com/stateandlocal/unified_communications.html

36

36

-CHANGE IN MEAN

(AVERAGE) TEMPERATURE

-CHANGE IN TEMPERATURE

EXTREMES -CHANGE IN

MEAN (AVERAGE)



-CHANGE IN PRECIPITATION

EXTREMES AND

DROUGHTS -SNOW AND

ICE -INTRODUCED CHANGES IN

NATURAL RESROUCES


AT&T, and the information and communications technology (ICT) industry at large, are uniquely positioned to develop and advance solutions that can help reduce greenhouse gas emissions while protecting and promoting opportunities beyond just regulatory and physical. There are numerous opportunities for communications and broadband infrastructure, like the network and services AT&T provides, to increase energy efficiency and productivity while reducing greenhouse gas emissions. Some examples include:

Decreasing energy-intensive travel through telecommuting, teleconferencing and other services.

Providing centralized data management, Internet, communications and software service for customers.

Dematerializing public and commercial activities through electronic billing, online provision of governmental services and online delivery of goods and services, such as education, libraries, research, medicine, videos and music.

Rationalizing transportation and distribution systems using next-generation dispatching and planning software combined with satellite-based GPS systems.

Improving energy efficiency in commercial and residential buildings through more sophisticated monitoring and dispatching systems for more accurate control and delivery of energy.

AT&T Consulting Services AT&T Consulting provides a spectrum of business and infrastructure services which help build competitive advantage, meet compliance requirements, and optimize IT performance. Many of their services have direct or indirect sustainability benefits through the reduction of energy and carbon emissions. This provides ongoing and global business opportunities for us, as companies seek to address risks and embrace opportunities posed by environmental risk. Fuel Efficiency AT&T has one of the largest commercial fleets in the nation. As the cost of fuel remains volatile, this poses an opportunity for our company to invest in fuel-savings technology. In addition, other can use the fleet management products for fleet efficiencies. Energy Efficiency As the price of energy increases, this leads to opportunities for our company is look at our energy operations and work to better manage our energy use.


COSTS


-INCREASED DEMAND FOR

EXISTING PRODUCTS AND

SERVICES

-PREMIUM PRICE OPPORTUNITIES


CAPACITY


AVAILABILITY

-INCREASED STOCK PRICE

(MARKET VALUATION)

-NEW

PRODUCTS/BUSINESS SERVICES

-INVESTMENT

OPPORTUNITIES

-WIDER SOCIAL BENEFITS

-OTHER

CURRENT

1-5 YEARS

6-10 YEARS

>10 YEARS

UNKNOWN

DIRECT


INDIRECT (CLIENT)

VIRTUALLY CERTAIN

VERY LIKELY

LIKELY


AS LIKELY AS

NOT

UNLIKELY

VERY UNLIKELY

EXCEPTIONALL

Y UNLIKELY

UNKNOWN

HIGH

MEDIUM-HIGH

MEDIUM

LOW-

MEDIUM

LOW

UNKNOWN

37

37

6.1f


These opportunities present potentials for cost saving and revenue generation. In 2009, AT&T announced the establishment of the AT&T Business Sustainability Advisory Council to better quantify the environmental benefits of our products and services. In 2010, the AT&T Business Advisory Council held its first two meetings, both a physical meeting in Washington, D.C. and a meeting via telepresence, to discuss the growing role of ICT solutions in business. We have not determined the exact costs associated with these actions.

6.1g

Please explain why you do not consider your company to be exposed to opportunities driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure

6.1h

Please explain why you do not consider your company to be exposed to opportunities driven by physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure

6.1i

Please explain why you do not consider your company to be exposed to opportunities driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure

38

38

Carbon Disclosure Project CDP 2011 Investor CDP 2011 Information Request

AT&T Inc.

Module: GHG Emissions Accounting, Energy and Fuel Use, and Trading [Investor]

Page: 7. Emissions Methodology

7.1

Please provide your base year and base year emissions (Scopes 1 and 2)

Base year

Scope 1 Base year emissions (metric tonnes CO2e)

Scope 2 Base year emissions (metric tonnes CO2e)

2009 1,170,232 7,745,546

7.2 Please give the name of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions

Please select the published methodologies that you use US EPA Climate Leaders: Direct Emissions from Stationary Combustion US EPA Climate Leaders: Indirect Emissions from Purchases/ Sales of

Electricity and Steam The Greenhouse Gas Protocol: A Corporate Accounting and Reporting

Standard (Revised Edition)

7.2a

If you have selected "Other", please provide details below

7.3

39

39

Please give the source for the global warming potentials you have used

Gas Reference

CO2: 1 CH4: 21

N2O: 310 HFC-134a: 1,300

Intergovernmental Panel on Climate

Change (IPCC), Second Assessment Report

(SAR), 1996

7.4

Please give the emissions factors you have applied and their origin; alternatively, please attach an Excel spreadsheet with this data

Fuel/Material/Energy Emission Factor Unit Reference

Steam 0.22 lbs CO2-e/lbs

steam

EPA Climate Leaders Indirect Emissions from Purchases/Sales of Electricity and Steam EPA430-K-

03-006 June 2008

Natural Gas 117.09 lbs CO2-e/MMBtu EPA Climate Leaders Direct Emissions from

Stationary Combustion Sources EPA430-K-08-003 May 2008 Table B-3; Table A-1 adjusted for fuel type

Propane 12.70 lbs CO2-e/gallon EPA Climate Leaders Direct Emissions from


Fuel Oil 22.49 lbs CO2-e/gallon EPA Climate Leaders Direct Emissions from


Flight Operations 21.32 lbs CO2-e/gallon EPA Climate Leaders Direct Emissions from Mobile

Combustion Sources EPA430K-08-004 May 2008 Table B-2 CO2; Table A-6 N2O & CH4

Electric Multiple lbs CO2/KWh

US EPA eGRID2010 (year 2007) version 1.0; emission factor values correspond to the eGRID subregion in

which the facility operation resides. International emission factors: WRI/ WBCSD GHG Protocol.

International Energy Agency Data Services. 2009. "CO2 Emissions from Fuel Combustion”

Fleet Multiple

depending on fuel type

lbs CO2/gallon EPA Climate Leaders Direct Emissions from Mobile

Combustion Sources EPA430K-08-004 May 2008

40

40

Page: 8. Emissions Data - (1 Jan 2010 - 1 Jan 2011)

8.1

Please select the boundary you are using for your Scope 1 and 2 greenhouse gas inventory Operational Control

8.2a

Please provide your gross global Scope 1 emissions figure in metric tonnes CO2e 1,105,251 mtons CO2e

8.2b Only applicable if CCRF was chosen in Q8.1

Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e - Part 1 breakdown

Boundary

Gross global Scope 1 emissions (metric tonnes CO2e)

Comment

8.2c Only applicable if CCRF was chosen in Q8.1

Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e - Part 1 Total

Gross global Scope 1 emissions (metric tonnes CO2e) - Total Part 1

Comment

8.2d Only applicable if CCRF was chosen in Q8.1

Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e - Part 2

Gross global Scope 1 emissions (metric tonnes CO2e) - Other operationally controlled entities, activities or facilities

Comment

8.3a

41

41

Please provide your gross global Scope 2 emissions figure in metric tonnes CO2e 7,798,222 mtons CO2e

8.3b Only applicable if CCRF was chosen in Q8.1

Please provide your gross global Scope 2 emissions figures in metric tonnes CO2e - Part 1 breakdown

Boundary

Gross global Scope 2 emissions (metric tonnes CO2e)

Comment

8.3c Only applicable if CCRF was chosen in Q8.1

Please provide your gross global Scope 2 emissions figures in metric tonnes CO2e - Part 1 Total

Gross global Scope 2 emissions (metric tonnes CO2e) - Total Part 1

Comment

8.3d Only applicable if CCRF was chosen in Q8.1

Please provide your gross global Scope 2 emissions figures in metric tonnes CO2e - Part 2

Gross global Scope 2 emissions (metric tonnes CO2e) - Other operationally controlled entities, activities or facilities

Comment

8.4

Are there are any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions which are not included in your disclosure? YES

8.4a

42

42


Reporting Entity

Source

Scope

Explain why the source is excluded

[This cell should only be populated if CCRF was

chosen in 8.1]

Ground Equipment for

Flight Operations

1

A very limited number of pieces of powered ground equipment are utilized in conjunction with our flight operations. The impact was deemed too

small to measure given the overall scale of the carbon inventory.

8.5

Please estimate the level of uncertainty of the total gross global Scope 1 and Scope 2 figures that you have supplied and specify the sources of uncertainty in your data gathering, handling, and calculations

Scope

Uncertainty Range

Main sources of uncertainty

Please expand on the uncertainty in your data

1 Less than or equal to 2% Extrapolation

Extrapolations from data samples were used for

handheld propane, emergency generator runtimes,

refrigerant, and a small portion of our business rental

car travel.

8.6

Please indicate the verification/assurance status that applies to your Scope 1 emissions N/A

8.6a

Please indicate the proportion of your Scope 1 emissions that are verified/assured

8.6b

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Please provide further details of the verification/assurance undertaken, and attach the relevant statements

Type of verification or assurance

Relevant standard

Relevant statement attached

8.7


8.7a


8.7b



Relevant standard


8.8

Are carbon dioxide emissions from the combustion of biologically sequestered carbon (i.e. carbon dioxide emissions from burning biomass/biofuels) relevant to your company? N/A

8.8a

Please provide the emissions in metric tonnes CO2e

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Page: 9. Scope 1 Emissions Breakdown - (1 Jan 2010 - 1 Jan 2011)

9.1

Do you have Scope 1 emissions sources in more than one country or region (if covered by emissions regulation at a regional level)? YES

9.1a

Please complete the table below

Country Scope 1 metric tonnes CO2e

US 1,102,950

Rest of World 2,301

9.2

Please indicate which other Scope 1 emissions breakdowns you are able to provide (tick all that apply)

9.2a

Please break down your total gross global Scope 1 emissions by business division

Business Division

Scope 1 metric tonnes CO2e

9.2b

Please break down your total gross global Scope 1 emissions by facility

Facility


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9.2c

Please break down your total gross global Scope 1 emissions by GHG type

GHG type Scope 1 metric tonnes CO2e

CO2 942,474

CH4 878

N2O 18,595

HFC 143,303

9.2d

Please break down your total gross global Scope 1 emissions by activity

Activity Scope 1 metric tonnes CO2e

Ground Fleet 690,721

Natural Gas 115,781

Propane 4,282

#2 Fuel Oil/Diesel 12,252

Stationary Engines 119,715

Portable Generators 6,123

Refrigerant 143,303

Page: 10. Scope 2 Emissions Breakdown - (1 Jan 2010 - 1 Jan 2011)

10.1

Do you have Scope 2 emissions sources in more than one country or region (if covered by emissions regulation at a regional level)? YES

10.1a

Please complete the table below

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Country Scope 2 metric tonnes CO2e

US 7,762,531

Rest of World 35,691

10.2

Please indicate which other Scope 2 emissions breakdowns you are able to provide (tick all that apply)

10.2a

Please break down your total gross global Scope 2 emissions by business division

Business division


10.2b

Please break down your total gross global Scope 2 emissions by facility

Facility


10.2c

Please break down your total gross global Scope 2 emissions by activity

Activity Scope 2 metric tonnes CO2e

Purchased Electric Power 7,785,958

Purchased Steam 12,264

Page: 11. Emissions Scope 2 Contractual

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11.1

Do you consider that the grid average factors used to report Scope 2 emissions in Question 8.3 reflect the contractual arrangements you have with electricity suppliers? YES

11.1a

You may report a total contractual Scope 2 figure in response to this question. Please provide your total global contractual Scope 2 GHG emissions figure in metric tonnes CO2e

11.1b

Explain the basis of the alternative figure (see guidance)

11.2

Has your organization retired any certificates, e.g. Renewable Energy Certificates, associated with zero or low carbon electricity within the reporting year or has this been done on your behalf? NO

11.2a

Please provide details including the number and type of certificates

Type of certificate

Number of certificates

Comments

Page: 12. Energy

12.1

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What percentage of your total operational spend in the reporting year was on energy?

12.2

Please state how much fuel, electricity, heat, steam, and cooling in MWh your organization has consumed during the reporting year

Energy type MWh

Electricity 13,610,065

Steam 43,781

Fuel 7,709,396

12.3

Please complete the table by breaking down the total "Fuel" figure entered above by fuel type

Fuels MWh

Natural Gas 639,001

Distillate fuel oil No 2 4,552,735

Motor Gasoline 2,434,163

Propane 6,968

CNG 22,051

Ethanol-85 1,017

Jet A (Jet kerosene) 53,461

Page: 13. Emissions Performance

13.1

How do your absolute emissions (Scope 1 and 2 combined) for the reporting year compare to the previous year? Decreased

13.1a

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Reason Emissions value

(percentage) Direction of

change Comment

EMISSIONS REDUCTION ACTIVITIES DIVESTMENT ACQUISITIONS MERGERS CHANGE IN OUTPUT CHANGE IN METHODOLOGY CHANGE IN BOUNDARY UNIDENTIFIED OTHER

0.13 Decrease

We know that our electricity use and our fleet are our two biggest drivers of emissions, and we have set goals related to both and established initiatives to help us meet those goals. For energy, we have established an intensity metric to track and measure our electricity usage as related to our growth in terms of the total amount of information transmitted over our network, including our global network, voice and video traffic. Our energy director and his team work to implement energy-savings projects and explore alternative energy options. In 2010, we used 415 kWh per terabyte of data carried on our network, which is a 16.6 percent decrease from 2009. We implemented 4,200 energy-saving projects, which resulted in an annualized energy savings of 443 million kWh, which equates to $44million. For our fleet, in March 2009, we announced plans to invest up to $565 million as part of a long-term strategy to deploy approximately 15,000 alternative-fuel vehicles through the end of 2018. By the end of 2010, AT&T had deployed 3,487 AFVs, including 2,472 CNG vehicles and 1,013 hybrid electric vehicles. AT&T has also deployed two all-electric vehicles (AEVs). The use of compressed natural gas (CNG) vehicles in our corporate vehicle fleet helped the company avoid the purchase of more than one million gallons of traditional petroleum fuel in 2010.

13.2

Please describe your gross combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per unit currency total revenue

Intensity figure Metric

numerator Metric

denominator

% change from

previous year

Direction of change from previous year

Explanation

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71,640 metric tonnes

CO2e Billon $ Revenue

1.56 Decrease

We know that our electricity use and our fleet are our two biggest drivers of emissions, and we have set goals related to both and established initiatives to help us meet those goals. For energy, we have established an intensity metric to track and measure our electricity usage as related to our growth in terms of the total amount of information transmitted over our network, including our global network, voice and video traffic. Our energy director and his team work to implement energy-savings projects and explore alternative energy options. In 2010, we used 415 kWh per terabyte of data carried on our network, which is a 16.6 percent decrease from 2009. We implemented 4,200 energy-saving projects, which resulted in an annualized energy savings of 443 million kWh, which equates to $44million. For our fleet, in March 2009, we announced plans to invest up to $565 million as part of a long-term strategy to deploy approximately 15,000 alternative-fuel vehicles through the end of 2018. By the end of 2010, AT&T had deployed 3,487 AFVs, including 2,472 CNG vehicles and 1,013 hybrid electric vehicles. AT&T has also deployed two all-electric vehicles (AEVs). The use of compressed natural gas (CNG) vehicles in our corporate vehicle fleet helped the company avoid the purchase of more than one million gallons of traditional petroleum fuel in 2010.

13.3 Please describe your gross combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per full time equivalent (FTE) employee

Intensity figure Metric numerator Metric denominator % change from previous year


Explanation

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33.40 metric tonnes CO2e FTE employee 6.05 Increase

As our business changes — most notably shifting from wireline to a wireless focus — and economic pressures

impact our company, we continue to adjust the size of our workforce. This remains an ongoing challenge for our

company, as it does for many. As of the end of 2010, we had 266,590 employees. This is compared to 282,720

employees at the end of 2009.

13.4 Please provide an additional intensity (normalized) metric that is appropriate to your business operations

Intensity figure Metric numerator Metric denominator % change from previous year


Explanation

288 metric tonnes CO2e Petabyte of Data over

AT&T Network 20.62 Decrease

In absolute terms our overall

emissions are going down, but

we’re also experiencing a

dramatic growth in the network. In

fact, mobile broadband on

AT&T’s network has grown nearly

2,300 percent over the past three

years. To address this, we’re putting dedicated efforts into operating a more efficient

network.

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Page: 14. Emissions Trading

14.1

Do you participate in any emission trading schemes? NO

14.1a

Please complete the following table for each of the emission trading schemes in which you participate

Scheme name

Period for which data is supplied

Allowances allocated

Allowances purchased

Verified emissions in metric tonnes CO2e

Details of ownership

14.1b

What is your strategy for complying with the schemes in which you participate or anticipate participating?

14.2

Has your company originated any project-based carbon credits or purchased any within the reporting period? NO

14.2a

Please complete the following table

Credit origination or

credit purchase

Project type

Project identification

Verified to which standard

Number of credits (metric

tonnes of CO2e)

Number of credits (metric tonnes

CO2e): Risk adjusted volume

Credits retired

Purpose e.g. compliance

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Page: 15. Scope 3 Emissions

15.1

Please provide data on sources of Scope 3 emissions that are relevant to your organization

Sources of Scope 3 emissions metric tonnes CO2e Methodology If you cannot provide a figure for emissions, please describe them

Business Air Travel 49,622

EPA Climate Leaders: Optional Emissions from

Commuting, Business Travel,

and Product Transport

Business Rental Car Travel 13,587

EPA Climate Leaders: Optional Emissions from

Commuting, Business Travel,

and Product Transport

15.2


15.2a


15.2b

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Relevant standard


15.3

How do your absolute Scope 3 emissions for the reporting year compare to the previous year? Increased

15.3a


Emissions reduction activities Divestment Acquisitions Mergers Change in output Change in methodology Change in boundary Unidentified Other, please specify Even though we’re working to replace some of our travel with virtual solutions such as AT&T Telepresence Solution®, increased business activity required more travel this past year.

Emissions value (percentage)

9.5

Direction of Change Increase

Comment To address travel-related GHG

emissions, AT&T has more than doubled its internal deployment of

Telepresence from 50 rooms in 2009 to more than 130 rooms at the end of 2010. The company

realized savings of more than $4.1 million in travel dollars and more than 2,500 metric tons of CO2-e

emissions avoided in 2010.

Module: Sign Off

Page: Sign Off

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Please enter the name of the individual that has signed off (approved) the response and their job title John Schulz, Director – External Affairs

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