AA1000 reporting standard

BT Group PLC
04 July 2003


July 4, 2003


      BT reaches new AA1000 Assurance Standard foR non-financial reporting

BT today published its new social and environmental report and

becomes the largest company yet to apply the new AA1000 Assurance Standard for
sustainability reporting.

Launched in March this year, the AA1000 Assurance Standard is designed to assure
the credibility of social and environmental reporting by guiding companies and
auditors through the rigours of non-financial reporting.

BT chief executive officer Ben Verwaayen highlighting the importance of
non-financial issues to business success said: "Our key financial goals of
improving cash flow, increasing earnings per share and reducing debt are
critical. But fundamental to the achievement of these objectives is the
underlying strength of BT as a whole - and this can't always be measured in
pound signs.

"Our business strength must be based on passion for customers. However,
fulfilling the complete range of customer expectations requires top performance
across a full range of issues. Maximising employee motivation, valuing
diversity, acting with integrity, reducing our environmental impacts and
behaving in a socially responsible manner."

BT's social and environmental results for the 2003 financial year are captured
in ten non-financial key performance indicators:

  • Customer dissatisfaction reduced by 37 per cent.

  • Broadband available to 67 per cent of UK households.
  • People Satisfaction Index steady at 67 per cent.
  • Increase in the percentage of ethnic minority employees (8.6 per cent) in
    BT while the percentage of women (24 per cent) and disabled employees (2 per
    cent) held steady.
  • Global warming CO2 emissions now 40 per cent lower than 1996.
  • Waste to landfill down 1.1 per cent to 89,878 tonnes and 24 per cent
    recycled.

  • Health and safety significant incident rate down from 126 to 113 per
    10,000 full time employees.
  • Ethical trading risk assessment questionnaires completed by 31 suppliers
    and 14 on-site assessments undertaken.
  • Community investment of £8.2 million plus £17.9 million in further funding
    and support in kind.

  • Awareness of our Statement of Business Practice in the UK up from 76 per
    cent to 83 per cent.

The report has been brought into accordance with the Global Reporting Initiative
guidelines and includes a new index to navigate the BT site according to the
nine principles of the United Nations Global Compact.



Notes to Editors:

  • The Better World website (www.bt.com/betterworld) is the BT social and
    environmental report. Rather than produce a printed document BT publishes
    its social and environmental performance online.

  • A full list of BT's non-financial key performance indicators including
    targets is available at www.bt.com/betterworld/dataandtargets

  • BT's assurance provider was Lloyds Register Quality Assurance

  • The Better World report has been ranked forth in the world in the 2002
    SustainAbility/ UNEP Global Reporters Report and recognised as the best
    web-based sustainability report in the 2003 ACCA Sustainability Reporting
    Awards.

  • BT has been awarded the Queens Award for Sustainable Development 2003.
    This award recognised the approach BT has taken on a number of key issues,
    including the importance of creating a proper work-life balance, ethical
    supply chain management, and the resource and financial savings delivered by
    the company's environmental programme.
  • BT is the winner of the Investor Relations Magazine Award for Best CSR
    Practice 2003.

                             For more information:

       Dunstan Hope, BT social policy development manager 020 7356 4268.

                Gerard Bithell, BT Group Newsroom 020 7356 5370.

   All BT group news releases can be accessed at our web site: www.btplc.com/
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