2012 Materiality Assessment

We must prioritize the issues that are most pressing to our business and that present the greatest opportunities for positive impact. We conduct a bi-annual strategic assessment of sustainability challenges and opportunities to our business. In 2010, we conducted our second assessment, culling through more than 200 publically available sources of information. To augment, we conducted a series of interviews with organizations widely regarded as experts in their respective fields, including: BSR, CDP, Pacific Institute, Environmental Defense Fund, World Resources Institute and World Wildlife Fund. We also solicited information feedback form AT&T's Consumer Advisory Panel.

Specifically, we assessed external trends in 44 areas that have direct relevant to AT&T's business success. We grouped these issues into eight broad categories: sustainable energy practices; product design and use; waste disposal, recycling and conservation efforts; privacy and security; supply chain stewardship; ethical business operations; employee relationships; and community engagement. For the vast majority of issues, we assessed external trends in three categories: market, social and regulatory. Where appropriate, we also included information on peer companies and competitors. Combined, this gave us a focused "snapshot" of the key trends and the potential impact they may have on the company. Here are our results:

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