CDP 2009 Information Request Respondent: Telstra Corporation Limited Introduction Telstra is Australia's leading telecommunications and information services company, providing integrated telecommunications services across fixed line, mobiles, broadband, information transactions, search, and pay TV. Telstra has one of the best known brands in the country and provides 9.2 million Australian fixed line and 9.7 million mobile services, including 5.2 million 3G services. Telstra's activities and infrastructure span Australia. It manages over 14,000 owned or leased sites (network facilities, depots and offices) as well as individual installations such as roadside equipment cabinets, cables and jointing pits and payphones. Telstra also has a large vehicle fleet of over 12,000 vehicles which includes service, construction and staff (salary sacrifice) vehicles. Risk and Opportunities 1. Regulatory Risks: (CDP6 1(a)(i)) 1.1 Is your company exposed to regulatory risks related to climate change? We consider Telstra to be exposed to regulatory risks related to climate change, as specified below. RISK IDENTIFICATION PROCESS Telstra's Compliance and Corporate Ethics Framework includes Risk Management to identify and manage risks within the company in a consistent and structured manner. Specialists within the Corporate Environment Group and Telstra Legal monitor new and proposed environmental legislation and liaise with relevant areas of the business and external stakeholders. Telstra monitors current and future legislation which will support a future emissions trading scheme and has made several submissions in relation to this policy issue. This also ensures that Telstra is consulted on any new legislation relating to energy or greenhouse gas emissions. CURRENT OR ANTICIPATED RISKS Telstra is subject to both Australian Federal and State/Territory energy efficiency and greenhouse legislation. Under the Federal Energy Efficiency Opportunities Act 2006 large energy users (those who use more than 0.5 PJ per year) are required to carry out energy audits covering 80% of energy usage in the first 5 year assessment cycle, and to identify and report publicly on energy saving opportunities which have a pay back of up to 4 years. Implementation of these actions is at the discretion of the company. Telstra endeavours to implement all targeted energy efficiency actions. Telstra has submitted its Assessment and Reporting Schedule and issued its First Public Report which outlines the status of identified actions. These are available at http://www.ret.gov.au/energy/efficiency/eeo/participating_corporations/corp_sz/Pages/default.aspx#telstra The National Greenhouse & Energy Reporting Act 2007 which commenced on 1 July 2008 requires large energy consumers or producers or greenhouse gas emitters to register and report publicly their energy use, production and greenhouse gas emissions. Telstra will be reporting under this act in 2009. State/Territory legislation varies. For example in New South Wales, Energy Action Plans must be developed for sites using more than 10 GWh per year. Telstra is participating in a number of State energy efficiency schemes where it meets the legislated thresholds. New South Wales also has greenhouse gas abatement legislation which allows companies to generate greenhouse gas abatement certificates which can be traded. Telstra participates voluntarily in this scheme by generating abatement certificates through its energy management program. See Question 22.1 for further details. ACTIONS TO MANAGE REGULATORY RISKS Telstra is prepared for these regulatory requirements as it has a well established energy management program and greenhouse gas emissions accounting system. The Australian Federal Government has announced its intention to implement an emissions trading scheme through its proposed Carbon Pollution Reduction Scheme. As the details of the scheme are still being developed Telstra cannot say with certainty to what it extent it will be directly or indirectly affected, for example by an increase in its costs for energy, or goods and services with high carbon intensity. Telstra will continue to monitor the proposal for the Carbon Pollution Reduction Scheme , participate in the consultation process and plan for the risks and opportunities that such a scheme may create. Further information 2. Physical Risks: (CDP6 1(a)(ii)) 2.1 Is your company exposed to physical risks from climate change? We consider Telstra to be exposed to physical risks in relation to climate change, as specified below..

RISK IDENTIFICATION PROCESS Telstra has an extensive telecommunications network throughout Australia with infrastructure including over 14,000 owned or leased sites, payphones, cable and equipment cabinets in public areas. Systems are in place to monitor and report the condition and performance of the network. These systems provide data relating to causes of network outages and damage. This data is used to monitor trends on the impacts on our infrastructure of extreme weather events or bushfires. Network Fault Data Telstra has a database to collect and monitor faults to its telecommunications network. Faults can be identified for a particular cause such as lightning or storm damage, water damage, physical damage etc. These data are used to show historical trends in network damage due to climatic impacts as well as to predict the impact of an increase in floods or lightning strikes. The interpretation of these trend data is fed back to the operations so that maintenance costs are appropriately planned for. Telstra also publishes data on Mass Service Disruptions at http://www.telstra.com.au/abouttelstra/commitments/msd/index.cfm Under the Universal Service Obligation, Telstra is required to respond to customer faults within set timeframes. In situations outside Telstra's control such as natural disasters or physical damage to infrastructure causing a mass service disruption, Telstra applies for an exemption and publishes the exemption and cause. Telstra commenced collection of data on Mass Service Disruptions in 2007, and a longer period of data collection will allow us to plot trends. It is evident, however, that cyclones and bushfires are significant factors contributing to mass service disruptions along with accidental damage such as a major cable being cut during excavation by another party. CURRENT OR ANTICIPATED PHYSICAL RISKS Telstra has identified a number of potential physical risks to the company as a result of climate change. Changes to climate may affect Telstra as an owner of infrastructure throughout all areas of Australia including city and urban, rural and remote, desert, tropical and alpine regions. Australia already experiences a variable climate and Telstra has extensive experience in managing the impact of extreme events on its infrastructure. However, climate change may have the effect of increasing the frequency or severity of such events. Telstra's infrastructure includes facilities such as exchanges and other network sites, offices and depots as well as an underground cable network, all of which is subject to damage or flooding during extreme weather events or to changes in climate. For example - - Increased flood and storm frequency and severity may give rise to higher costs due to potential for damage to infrastructure requiring additional repair or replacement. - Increased incidence of bushfires poses increased risk to Telstra infrastructure particularly that located in rural or remote locations. - Increased severity and frequency of droughts and may limit water availability to Telstra facilities. The extreme drying out of soils may lead to damage to conduits and cables. - Increased weather risks include increased cycling of drought and flooding which will repeatedly stretch/contract both overhead and underground cabling. ACTIONS TO MANAGE OR ADAPT TO PHYSICAL RISKS AND IMPACTS Climate Change Impacts Changes to climate may affect Telstra as an owner of infrastructure throughout all areas of Australia in city and urban areas, rural and remote, desert, tropical and alpine regions. Infrastructure includes facilities such as exchanges and other network sites, offices and depots as well as an underground cable network, all of which can be subject to damage or flooding during extreme weather events or to changes in climate. Access by staff to sites can be restricted during flooding, storms or bushfires. This has always been an issue in remote areas and in seasonally affected areas such as those subject to bushfire, snow or seasonal heavy rains. Many network facilities normally operate in harsh environments and without staff present. Staff visit many sites only for routine maintenance or faults. The telecommunications network and all its facilities are monitored remotely at a Global Operations Centre in Melbourne. The network has the capability to restore telecommunications traffic on an alternative path, where an alternative path exists, should a fault develop either at a facility or on a transmission system. Where such restoration is not done automatically, manual actions can be invoked via staff at the Global Operations Centre. Telstra's experience in operating under these conditions will be an advantage in the event of an increase in adverse climatic conditions. Whilst the drought currently being experienced in Australia has not yet impacted on the availability of water to Telstra sites, Telstra has recognised the need to be more water efficient and is developing and implementing water efficiency plans for its property portfolio. Water efficiency initiatives are now extended to a variety of sites both large and small. Telstra's experience in managing energy efficiency projects has been a benefit as the same system is now being used to measure water use and account for water savings across Telstra sites. During 2008-09 water saving actions saved an estimated 52 megalitres of water per year at office buildings and network sites. In some parts of Australia, e.g. SE Queensland and New South Wales, there is a regulatory requirement to develop water efficiency plans for large water use sites. Failure to submit "Water Efficiency Plans" in SE Queensland can result in water being disconnected from the site. Telstra is compliant with these requirements.

Disaster Management Disaster plans are already in place along with a well developed governance structure that sets out clear accountabilities for responding to emergency situations and to mobilise additional staff for repairs following floods, storms and bushfires. The effects of climate change may mean that these plans are implemented more frequently. Telstra's "Triple Three Recovery Plan" has three distinct phases aimed at restoring communication services after a disaster – - immediate short term service within the first three days - temporary network restoration within three weeks - final infrastructure build within three months In addition, Telstra has a range of portable network support equipment on trailers or in shipping containers. An example is the "Cell on Wheels" which can be towed by a four wheel drive vehicle. The Cell on Wheels is designed for rapid recovery of mobile network infrastructure when existing base stations are damaged, or during natural disasters, such as bushfires and floods. Telstra also utilises portable generators and has agreements in place with local hire companies for priority access to generators. A key part of this plan is the role of Telstra's Global Operations Centre which is the only fully integrated global operations centre of its type operating in the world today. To support Telstra's myriad of services, a dedicated team work with some of the world's most sophisticated management and operational systems, to monitor and maintain the network 24 hours a day, 365 days a year. A Major Incident Control Centre has been created within the Global Operations Centre. This control centre is fully equipped with state-of-the-art video conferencing facilities and collaborative information sharing tools. This includes the capability to share and source the latest disaster information from emergency service organisations, before and during the bushfire and cyclone season. This means that emergency services organisations are better able to protect vital telecommunications infrastructure, as well as Telstra being able to provide reliable essential communications to the emergency services organisations during an emergency. The Global Operations Centre monitors weather conditions throughout Australia. In the event of an approaching cyclone or bushfire, checks are made to ensure sites in potentially affected areas are prepared with emergency equipment such as portable power generators or network equipment and that staff are on standby for repairs when it is safe to return. The Global Operations Centre also has the facility to relocate all its functionality to another location in the event of issues at the site itself. Data provided by the Global Operations Centre tracks extreme conditions facing the network. These could include cyclones, floods, fires or other extreme weather events. The attached document "CDP - Extreme Conditions (YTD April 09).ppt" shows the number and type of conditions being monitored since 2005. The Global Operations centre also monitors the number of changes in zones (i.e. risk level in a geographical zone) due to weather or extreme conditions. Data for 2006 onwards indicates a significant increase in the number of zone changes due to cyclones, floods and bushfires. Refer to attached document "Zone Changes (YTD 8 April 09).xls". As well as maintaining and restoring the network during a disaster, Telstra's priority is to assist the emergency and essential service organisations with their telecommunication requirements. Telstra also offers relief packages to affected customers. Further details are available at http://www.telstra.com.au/abouttelstra/csr/communities/disaster_relief.cfm Network Repair Telstra has well developed plans to make repairs following a disaster. As well as equipment and materials being available to make repairs, there are also strict safety procedures to be followed before staff can enter and work in a disaster zone. Staff cannot enter a disaster zone until it is declared safe by the emergency services coordinators. Telstra works closely with emergency services personnel to maintain and protect telecommunications both during and after the disaster. Sometimes Telstra staff develop an innovative solution for unique situations. The following are examples. In February 2009 extensive flooding in the north west of Australia extensively damaged kilometres of fibre cable. A temporary repair required 17 km of fibre cable (4 spools each 1 metre diameter and weighing 2.2 tonnes). For the first time Telstra enlisted the help of the Royal Australian Air Force who provided a C130 Hercules aircraft which was the only aircraft which could carry the payload and land on the short dirt airstrips in the region. In 2009 another flood situation near Ingham in north Queensland required a temporary cable to be laid quickly to maintain the coastal transmission link. Quick thinking by Telstra staff, a break in the weather and the cooperation of Queensland Rail allowed Telstra to lay temporary cables along a damaged railway line. The railway line was used as an anchor to withstand further flooding and the installation allowed railway repairs to continue. Despite the "break" in the weather, conditions were difficult with rain showers, mud, insects and crocodiles in close proximity. Further rain flooded the railway line again but the cable held and provided necessary communications. An equipment cabinet servicing customers in an industrial area in New South Wales became flood prone due to land development changes affecting the flood tables. Options to protect the cabinet were investigated and included the installation of a higher twin cabinet. Transferring the customers to a new cabinet would have caused major disruptions to services in the area. Telstra network designers came up with the innovative proposal to raise the cabinet whilst operational. A crane was used to lift the cabinet whilst a concrete base and frame was built to support the cabinet above flood level. This innovative solution resulted in no outages to customers as well as substantial cost savings. Further information

3. Other Risks: (CDP6 1(a)(iii)) 3.1 Is your company exposed to other risks as a result of climate change? We consider Telstra to be exposed to other risks related to climate change. RISK IDENTIFICATION PROCESS Refer to Question 1.1 CURRRENT OR ANTICIPATED RISKS Telstra has a large vehicle fleet and is dependent on transport to install, service and maintain its infrastructure. The fleet is currently reliant on the use of fossil fuels. It also has over 14,000 owned or leased sites (network and commercial) using electricity. This makes Telstra susceptible to increased costs associated with greenhouse gas emissions. Increased flood and storm frequency is likely to lead to increased repair costs for damage arising from natural perils. Being largely self insured for these types of events it is in Telstra's interest to anticipate and manage climate change effects. Drought, flooding and snow reduction could make some infrastructure redundant in the long term due to shifts in population. From a business perspective, the changing expectations of our major customers such as banks or large corporations means that our response to climate change could impact on how we are perceived by our customers. Some customers are already considering greenhouse gas emissions in their supply chain decisions. Similarly, heightened interest and perceptions of concern about the impact of climate change place a public spotlight on how Telstra responds to both the effects and manages public perceptions around this issue. New regulations, including a poorly designed emissions trading scheme, could have the effect of dampening growth in the Australian economy without commensurate benefits. ACTIONS TO MANAGE RISKS AND IMPACTS Telstra has estimated its carbon footprint for a major customer using Life Cycle methodology. Refer to Question SM 1.3 for further details. Further information 4. Regulatory Opportunities: (CDP6 1(b)(i)) 4.1 Do regulatory requirements on climate change present opportunities for your company? Regulatory requirements related to climate change present opportunities for Telstra. Telstra is highly engaged with the development of climate change related legislation and reviews. By starting early in 2000 to measure energy use and greenhouse gas emissions, and supporting voluntary greenhouse reduction schemes such as the Australian Government's Greenhouse Challenge Plus Program, Telstra has taken the opportunity to implement systems best suited to its business and to be prepared for any future regulatory requirements as well as being recognised as a responsible corporation. The system implemented for energy and greenhouse management is also being extended to account for and manage water use. Being involved in programs like Greenhouse Challenge Plus also means that Telstra is aware of new regulatory developments and is able to be actively involved in the consultation process for new or proposed regulation. This has resulted in regulation specifically addressing issues of concern to Telstra such as aggregation of data for companies like Telstra with linear infrastructure and a large number of small sites. The Energy Efficiency Opportunities legislation has provided a focus to extend Telstra's energy management program beyond infrastructure efficiency to include business unit processes and their impact on energy efficiency. Telstra's comprehensive standard of reporting has been recognised by the government department administering the implementation of the legislation. Telstra staff who prepared the report have been invited to address a workshop to assist other companies to develop and improve their reports. The Australian government has also indicated that it will review and potentially amalgamate the various State-based programs for renewable energy, energy reporting and energy efficiency. This would be a benefit to Telstra to only respond to a single set of legislation and have one point of reporting instead of the current multiple reporting. Current and anticipated regulatory requirements, including the prospect of increasing energy costs, are also prompting our customers to consider ways to reduce their carbon emissions. This creates an opportunity for Telstra as use of our telecommunications products and services (e.g. teleconferencing) can provide practical ways for our customers to use energy more efficiently, and save on carbon emissions.

Further information 5. Physical Opportunities: (CDP6 1(b)(ii)) 5.1 Do physical changes resulting from climate change present opportunities for your company? Physical changes present opportunities for Telstra. Increased severity and frequency of climatic events means that reliable telecommunications will continue to be an important part of managing and minimising the social impacts of such events. Telstra has a number of strategies in place to ensure reliability of the network such as back up power supplies and mandatory restoration timeframes for contractors. This is a way of demonstrating to customers the continuity and reliability of Telstra's services. Telecommunications have a role to play in monitoring the physical impacts through the use of telemetry. As an example the Australian Institute of Marine Science is using one of the world's first reef-based internet protocol networks to monitor coral bleaching events on the Great Barrier Reef. Previously a dedicated microwave-based network would have cost $500,000 per location. The new pre-packaged system costs less than $1,000 per unit and can be located anywhere there is Next G™ network coverage. Further information 6. Other Opportunities: (CDP6 1(b)(iii)) 6.1 Does climate change present other opportunities for your company? Climate change presents other opportunities for Telstra. In a carbon-constrained world, it will become increasingly attractive to use telecommunications and digital technologies to help conserve energy and other resources, and cut carbon emissions. The potential savings are on a scale many times higher than the energy consumed in the ICT industry itself. As an illustration of this point, in October 2007 Telstra released a report by climate change experts Climate Risk Pty Ltd which it had commissioned, "Towards a High-Bandwidth, Low-Carbon Future; Telecommunications-based Opportunities to Reduce Greenhouse Gas Emissions". A copy of the report can be downloaded from Telstra's website: http://www.telstra.com.au/abouttelstra/csr/climate_change.cfm. The report identifies seven opportunities using telecommunications networks and digital products that if implemented, could lead to a reduction in Australia's emissions by almost 5% or around 27 million carbon tonnes by 2015. This scale of impact depends on the existence of pervasive and highly integrated broadband networks, connecting intelligent sensing and control devices with sophisticated applications. These seven opportunities are - 1. Networked demand-side energy management to increase renewable energy use 2. Integrated personalised public transport to your door with a phone call, or ordered online 3. "In-person" high-definition video conferencing in lieu of business travel 4. Presence- based power to turn appliances on or off using wireless presence sensors 5. Real-time freight management with vehicle monitoring via wireless broadband to fill empty vehicles 6. Remote power management for appliances not in use or on "standby", via broadband enabled sensors 7. Decentralised business district: teleworking To provide further data to support this report Telstra has completed a Life Cycle Assessment for Teleworking and Online Billing. These reports are being made available to enterprise customers and can be found at http://www.nowwearetalking.com.au/carbon/research To help identify both technical and cultural barriers to teleworking and emissions savings, Telstra has introduced "Product Experience for a Green Working Day" whereby on certain designated days selected staff who have remote access to the network and management approval are invited to work away from the office. During the day staff can access an online demonstration of online collaboration tools such as Webex which can reduce their need for travel. As well as providing training on online collaboration tools, staff can become more comfortable with teleworking. At the end of the day staff complete a short questionnaire relating to any problems or advantages they experienced and their perceptions of productivity. To obtain further data on teleworking, a survey of over 8,000 Telstra staff registered as RNA users was completed. A report has been prepared which is being used to inform management on attitudes, productivity, emissions savings and technical problems from teleworking. The data obtained is also used to validate data used in the Teleworking Life Cycle Assessment Project. Refer to Question 14 for further details of this project. Telstra has further explored the impact of ICT technologies such as video conferencing, teleworking, web contact centres and fleet and field force management solutions on sustainability. Telstra can help its customers quantify the strong commercial, environmental and societal benefits potential which can potentially be realised using ICT as a driver of sustainability strategies through sophisticated ROI tools. This is further explored in a joint Telstra – WWF white paper “Using ICT to drive your sustainability strategy” available at http://www.telstraenterprise.com/researchinsights/Pages/Sustainability.aspx

Further information Greenhouse Gas (GHG) Emissions Accounting, Emissions Intensity, Energy and Trading 7. Reporting Year (CDP6 Q2(a)(ii)) Information about how to respond to this section may be found in “The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition)” developed by the World Resources Institute and the World Business Council for Sustainable Development (“the GHG Protocol”), see http://www.ghgprotocol.org/. ISO 140641 is compatible with the GHG Protocol as are a number of regional/national programme protocols. For more information see http://www.ghgprotocol.org/ and use the guidance button above. Please provide CDP with responses to questions 7, 8, 9, 10.1, 10.2, 11.1 and 11.2 for the three years prior to the current reporting year if you have not done so before or if this is the first time you have answered a CDP information request. Please work backwards from the current reporting year, so that you enter data for your oldest reporting period last. Questions 10.1, 10.2, 11.1, and 11.2 are on subsequent webpages and the dates that you give in answer to question 7 will be carried forwards to automatically populate those webpages. 7.1. Please state the start date and end date of the year for which you are reporting GHG emissions. Start date: 01 July 2007 End date: 30 June 2008 Financial accounting year: 01 July 2007 8. Reporting Boundary: (CDP6 Q2(a)(i)) 8.1. Please indicate the category that describes the company, entities, or group for which Scope 1 and Scope 2 GHG emissions are reported. Companies over which financial control is exercised – per consolidated audited Financial Statements. 8.2. Please state whether any parts of your business or sources of GHG emissions are excluded from your reporting boundary. Telstra reports its emissions for facilities and activities within Australia. Emissions from Telstra entities operating outside Australia are excluded. 9. Methodology: (CDP6 Q2(a)(iii)) 9.1. Please describe the process used by your company to calculate Scope 1 and Scope 2 GHG emissions including the name of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 GHG emissions. Please provide your answer in the text box. In addition to this description, if relevant, select a methodology from the list of published methodologies. This will aid automated analysis of the data. The methodology by which emissions are calculated is in accordance with those set out by the Australian Government Department of Climate Change which aims to provide information in a format consistent with key international standards. The relevant methodologies and factors used include – - National Greenhouse Accounts (NGA) Factors at http://www.climatechange.gov.au/workbook/index.html - National Greenhouse and Energy Reporting (Measurement) Technical Guidelines at http://www.climatechange.gov.au/reporting/guidelines/index.html Data is collected for the energy use of Telstra properties and vehicle fleet and is converted to greenhouse gas emissions using the above methodologies. Select methodologies: See 9.1 above Please also provide: 9.2 Details of any assumptions made. 9.3 The names of and links to any calculation tools used. National Greenhouse Accounts (NGA) Factors at http://www.climatechange.gov.au/workbook/index.html National Greenhouse and Energy Reporting (Measurement) Technical Guidelines at http://www.climatechange.gov.au/reporting/guidelines/index.html Select calculation tools: See 9.3 above 9.4 The global warming potentials you have applied and their origin. National Greenhouse Accounts (NGA) Factors Appendix 1 Gas Global Warming Potential

Carbon dioxide 1 Methane 21 9.5 The emission factors you have applied and their origin. National Greenhouse Accounts (NGA) Factors See attached document “Telstra Conversion Factors 07-08.xls” (Extract from calculation spreadsheets) Further information http://cdp.cdproject.net/attachedfiles/Responses/53740/6854/Telstra Conversion Factors 0708.Xls 10. Scope 1 Direct GHG Emissions: (CDP6 Q2(b)(i)) Instructions for question 10 and question 11 (following page) When providing answers to questions 10 and 11, please do not deduct offset credits, Renewable Energy Certificates etc, or net off any estimated avoided emissions from the export of renewable energy, carbon sequestration (including enhanced oil recovery) or from the use of goods and services. Opportunities to provide details of activities that reduce or avoid emissions are provided elsewhere in the information request. Carbon dioxide emissions from biologically sequestered carbon e.g. carbon dioxide from burning biomass/biofuels should be reported separately from emissions Scopes 1, 2 and 3. If relevant, please report these emissions in question 15. However, please do include any nitrous oxide or methane emissions from biomass/biofuel combustion in your emissions under the three scopes. Please answer the following questions using Table 1. Please provide: 10.1. Total gross global Scope 1 GHG emissions in metric tonnes of CO2e Please break down your total gross global Scope 1 emissions by: 10.2. Country or region Please provide CDP with responses to questions 10.1 and 10.2 for the three years prior to the current reporting year if you have not done so before or if this is the first time you have answered a CDP information request. Please work backwards from the current reporting year, so that you enter data for your oldest reporting period last. Table 1 (below) and table 5 (Q11.1 and 11.2) will be automatically populated with the dates that you give in answer to 7.1. Electric utilities should report emissions by country/region using the table in question EU3. Table 1 – Please use whole numbers only. Use the “Other” option in the drop down menu to enter the name of a region. Reporting year Q7.1 Start date 01/07/2007 Reporting year Q7.1 End date 30/06/2008 10.1 Total gross global Scope 1 GHG emissions in metric tonnes CO2-e 100440 10.2 Gross Scope 1 emissions in metric tonnes CO2-e by country or region Your answer to question 10.1 will be automatically carried forward to tables 2 and 3 below if you add a country or region in answer to 10.2 or press “Save” at the end of the page. Please tick the box if your total gross global Scope 1 figure (Q10.1) includes emissions that you have transferred outside your reporting boundary (as given in answer to 8.1). Please report these transfers under 13.5. Where it will facilitate a better understanding of your business, please also break down your total global Scope 1 emissions by: 10.3. Business division and/or 10.4. Facility 10.3. Business division (only data for the current reporting year requested) Table 2 Please use whole numbers only. Business Divisions - Enter names below Scope 1 Metric tonnes CO2-e Total gross global Scope 1 GHG emissions in metric tonnes CO2-e - answer to question Q10.1 100440 10.4. Facility (only data for the current reporting year requested) Table 3 Please use whole numbers only. Facilities - Enter names below Scope 1 Metric tonnes CO2-e Total gross global Scope 1 GHG emissions in metric tonnes CO2-e - answer to question Q10.1 100440 10.5. Please break down your total global Scope 1 GHG emissions in metric tonnes of the gas and metric tonnes of CO2e by GHG type. (Only data for the current reporting year requested.)

Table 4 Please use whole numbers only. Scope 1 GHG Type Unit Quantity CO2 Metric tonnes 100400 CH4 Metric tonnes CH4 Metric tonnes CO2-e N2O Metric tonnes N2O Metric tonnes CO2-e HFCs Metric tonnes HFCs Metric tonnes CO2-e PFCs Metric tonnes PFCs Metric tonnes CO2-e SF6 Metric tonnes SF6 Metric tonnes CO2-e 10.6. If you have not provided any information about Scope 1 emissions in response to the questions above, please explain your reasons and describe any plans you have for collecting Scope 1 GHG emissions information in future. Further information A breakdown of data by business unit was provided in the CDP Supply Chain Questionnaire in 2008. For detailed information and data on Telstra's greenhouse gas emissions please refer to Telstra's Corporate Responsibility Report 2008 at http://www.telstra.com.au/abouttelstra/csr/reporting_performance/reports.cfm 11. Scope 2 Indirect GHG Emissions: (CDP6 Q2(b)(i)) Important note about emission factors where zero or low carbon electricity is purchased: The emissions factor you should use for calculating Scope 2 emissions depends upon whether the electricity you purchase is counted in calculating the grid average emissions factor or not – see below. You can find this out from your supplier. Electricity that IS counted in calculating the grid average emissions factor: Where electricity is sourced from the grid and that electricity has been counted in calculating the grid average emissions factor, Scope 2 emissions must be calculated using the grid average emissions factor, even if your company purchases electricity under a zero or low carbon electricity tariff. Electricity that is NOT counted in calculating the grid average emissions factor: Where zero or low carbon electricity is sourced from the grid or otherwise transmitted to the company and that electricity is not counted in calculating the grid average, the emissions factor specific to that method of generation can be used, provided that any certificates quantifying GHG-related environmental benefits claimed for the electricity are not sold or passed on separately from the electricity purchased. Click here to see the instructions from the previous page on answering question 11. Please answer the following questions using Table 5. Please provide: 11.1. Total gross global Scope 2 GHG emissions in metric tonnes of CO2e. Please break down your total gross global Scope 2 emissions by: 11.2. Country or region Please provide CDP with responses to questions 11.1 and 11.2 for the three years prior to the current reporting year if you have not done so before or if this is the first time you have answered a CDP information request. Please work backwards from the current reporting year, so that you enter data for your oldest reporting period last. Table 5 will be automatically populated with the dates that you gave in answer to 7.1. Table 5 Please use whole numbers only. Use the “Other” option in the drop down menu to enter the name of a region. Reporting year Q7.1 Start date 01/07/2007 Reporting year Q7.1 End date 30/06/2008 11.1 Total gross global Scope 2 GHG emissions in metric tonnes CO2-e 1215540 11.2 Gross Scope 2 emissions in metric tonnes CO2-e by country or region Your answer to 11.1 will be automatically carried forward to tables 6 and 7 below if you add a country or region in answer to 11.2 or press “Save” at the end of the page. Where it will facilitate a better understanding of your business, please also break down your total global Scope 2 emissions by: 11.3. Business division and/or 11.4. Facility 11.3. Business division (only data for the current reporting year requested)

Table 6 Please use whole numbers only. Business Divisions - Enter names below Scope 2 Metric tonnes CO2-e Total gross global Scope 2 GHG emissions in metric tonnes CO2-e - answer to question Q11.1 1215540 11.4. Facility (only data for the current reporting year requested) Table 7 Please use whole numbers only. Facilities - Enter names below Scope 2 Metric tonnes CO2-e Total gross global Scope 2 GHG emissions in metric tonnes CO2-e - answer to question Q11.1 1215540 11.5. If you have not provided any information about Scope 2 emissions in response to the questions above, please explain your reasons and describe any plans you have for collecting Scope 2 GHG emissions information in future. Further information A breakdown of emissions by Telstra business unit was provided in the CDP Supply Chain Questionnaire in 2008. For detailed information and data on Telstra's greenhouse gas emissions please refer to Telstra's Corporate Responsibility Report 2008 at http://www.telstra.com.au/abouttelstra/csr/reporting_performance/reports.cfm 12. Contractual Arrangements Supporting Particular Types of Electricity Generation: (CDP6 Q2(b)(i)Guidance) 12.1. If you consider that the grid average factor used to report Scope 2 emissions in question 11 does not reflect the contractual arrangements you have with electricity suppliers, (for example, because you purchase electricity using a zero or low carbon electricity tariff), you may calculate and report a contractual Scope 2 figure in response to this question, showing the origin of the alternative emission factor and information about the tariff. Telstra uses grid average factors. 12.2. If you retire any certificates (eg: Renewable Energy Certificates) associated with zero or low carbon electricity, please provide details. Further information 13. Scope 3 Other Indirect GHG Emissions: (CDP6 Q2(c)) For each of the following categories, please: - Describe the main sources of emissions, - Report emissions in metric tonnes of CO2e, - state the methodology, assumptions, calculation tools, databases, emission factors (including sources) and global warming potentials (including sources) you have used for calculating emissions. Notes about question 13 When providing answers to question 13, please do not deduct offset credits, Renewable Energy Certificates etc, or net off any estimated avoided emissions from the export of renewable energy, carbon sequestration (including enhanced oil recovery) or from the use of goods and services. Opportunities to provide details of activities that reduce or avoid emissions are provided elsewhere in the information request. Carbon dioxide emissions from biologically sequestered carbon e.g. carbon dioxide from burning biomass/biofuels should be reported separately from emissions Scopes 1, 2 and 3. If relevant, please report these emissions in question 15. However, please do include any nitrous oxide or methane emissions from biomass/biofuel combustion in your emissions under the three scopes. 13.1 Employee business travel Describe the main sources of emissions air and taxi travel Emissions in metric tonnes CO2e. During 2007-08 air travel by Telstra staff was 125,727 sectors (one way flights) or 124,054,956 km of flight. State the methodology, assumptions, calculation tools, databases, emission factors (including sources) and global warming potentials (including sources) you have used for calculating emissions. 13.2. External distribution/logistics Describe the main sources of emissions Distribution of equipment and materials to field staff. Distribution of Telstra products to retail outlets or directly to customers. Emissions in metric tonnes CO2e. Not measured yet.

State the methodology, assumptions, calculation tools, databases, emission factors (including sources) and global warming potentials (including sources) you have used for calculating emissions. 13.3 Use/disposal of company’s products and services For auto manufacture and auto component companies – please refer to the additional questions for these sectors before completing question 13.3. Describe the main sources of emissions Telstra has completed a study for a key customer to measure the greenhouse gas emissions from the provision of services to the customer. The study included the emissions from both the Telstra network equipment as well as the customer premises equipment. Telstra has developed Return on Investment Calculators to assist customers to quantify the environmental benefits of using ICT technologies. Refer to Question 6 for further details. Emissions in metric tonnes CO2e. State the methodology, assumptions, calculation tools, databases, emission factors (including sources) and global warming potentials (including sources) you have used for calculating emissions. Life Cycle Assessment methodology was used as well as emission factors from the SIMAPRO software and Australian National Greenhouse Accounts (NGA) Factors.

13.4 Company supply chain Describe the main sources of emissions Purchase of energy (electricity and fuel) Use of contractors for construction and maintenance of the network and facilities. Emissions in metric tonnes CO2e. Telstra has commenced a project to estimate the emissions generated from this source. State the methodology, assumptions, calculation tools, databases, emission factors (including sources) and global warming potentials (including sources) you have used for calculating emissions. Methodology is based on an estimated (or published) carbon intensity for different industry types. 13.5 Other If you are reporting emissions that do not fall into the categories above, please categorise them into transferred emissions and nontransferred emissions (please see guidance for an explanation of these terms). Please report transfers in the first three input fields and nontransfers in the last three input fields. Transfers Describe the main sources of emissions Scope 3 emissions for - Waste disposed to landfill - Electricity and other energy purchases Transfers Report emissions in metric tonnes of CO2e. 184822 Transfers State the methodology, assumptions, calculation tools, databases, emission factors (including sources) and global warming potentials (including sources) you have used for calculating emissions. Australian National Greenhouse Accounts (NGA) Factors Nontransfers Describe the main sources of emissions Nontransfers Report emissions in metric tonnes of CO2e. Nontransfers State the methodology, assumptions, calculation tools, databases, emission factors (including sources) and global warming potentials (including sources) you have used for calculating emissions. 13.6 If you have not provided information about one or more of the categories of Scope 3 GHG emissions in response to the questions above, please explain your reasons and describe any plans you have for collecting Scope 3 indirect emissions information in future.

Further information 14. Emissions Avoided Through Use Of Goods And Services (New for CDP 2009) 14.1. If your goods and/or services enable GHG emissions to be avoided by a third party, please provide details including the estimated avoided emissions, the anticipated timescale over which the emissions are avoided and the methodology, assumptions, emission factors (including sources), and global warming potentials (including sources) used for your estimations. Telstra has introduced products which can contribute to reductions in travel requirements and paper usage. Examples include Conferlink which connects people wherever they are, through audio conferencing, data conferencing, video conferencing and Conferlink online. The use of Conferlink conferences by Telstra staff and customers reduces the environmental impacts of travel, in particular those resulting from the use of fuels. Telstra offers a range of conferencing products to ensure that technology is accessible to all customers. These include – - web contact centres - online collaboration solutions such as Webex - desktop video packages - fitting out conference rooms or providing a managed service, and - High Definition Video Conferencing e.g. Cisco's "TelePresence" product. Telepresence is high-resolution "Online" video conferencing, representing the next generation of videoconferencing and is offered to large corporations. Online billing has been introduced. Customers are also offered a Single Bill and Summary Bill, reducing paper use and the energy associated with the delivery of separate bills. During 2007 Telstra completed a Life Cycle Assessment project to measure the environmental benefits of online billing compared with conventional paper billing. The study considered not just paper saving but also the impacts of energy use for servers and transport of bills and material impacts of equipment used. The study concluded that there is a benefit in terms of greenhouse gas emissions as well as other environmental impacts. The full report and a summary can be found at http://www.nowwearetalking.com.au/carbon/research Telstra commissioned a report by climate change experts Climate Risk Pty Ltd, "Towards a High-Bandwidth, Low-Carbon Future; Telecommunications-based Opportunities to Reduce Greenhouse Gas Emissions" which Telstra released in October 2007. The report identifies seven opportunities using telecommunications networks and digital products that could lead to a reduction in Australia's emissions by almost 5% or around 27 million carbon tonnes per year by 2015. A copy of the report can be downloaded from Telstra's website at http://www.telstra.com.au/abouttelstra/csr/climate_change.cfm A further project is being undertaken to identify and implement projects which develop, demonstrate and measure the potential of the opportunities identified in this report. Following on from this report, also in 2007 Telstra completed a Life Cycle Assessment project to measure the environmental benefits of teleworking. A scenario based on average data showed benefits in a range of environmental impacts including greenhouse gas emissions. The study also indicated the result is influenced by the distance travelled and the energy efficiency of both the company and home office. The Teleworking Study can be found at http://www.nowwearetalking.com.au/carbon/research Telstra has also used Life Cycle Assessment in assessing the impact in building new retail stores to identify the energy consuming aspects of a store fit-out. Telstra has further explored the impact of ICT technologies such as video conferencing, teleworking, web contact centres and fleet and field force management solutions on sustainability. Telstra can help its customers quantify the strong commercial, environmental and societal benefits potential which can potentially be realised using ICT as a driver of sustainability strategies through sophisticated ROI tools. This is further explored in a joint Telstra – WWF white paper “Using ICT to drive your sustainability strategy” available at http://www.telstraenterprise.com/researchinsights/Pages/Sustainability.aspx Further information 15. Carbon Dioxide Emissions from Biologically Sequestered Carbon: (New for CDP 2009) An example would be carbon dioxide from burning biomass/biofuels. 15.1. Please provide the total global carbon dioxide emissions in metric tonnes CO2 from biologically sequestered carbon. Emissions in metric tonnes CO2 Please use whole numbers only 0 Further information 16. Emissions Intensity: (CDP6 Q3(b)) 16.1. Please supply a financial emissions intensity measurement for the reporting year for your combined Scope 1 and 2 emissions. Please describe the measurement.

53 tonnes CO2e/AU$million revenue (for Scope 1 and 2 emissions only) Figures for the calculation are obtained from Telstra's Corporate Responsibility Report and Annual Report for 2008. 16.1.1. Give the units. For example, the units could be metric tonnes of CO2e per million Yen of turnover, metric tonnes of CO2e per US$ of profit, metric tonnes of CO2e per thousand Euros of turnover. tonnes CO2e/AU$million revenue 16.1.2. The resulting figure. Use a decimal point if necessary. Please use a “.” rather than a “,” i.e. please write 15.6 rather than 15,6 53 16.2. Please supply an activity related intensity measurement for the reporting year for your combined Scope 1 and 2 emissions. Please describe the measurement. Telstra does not use an activity related intensity measurement as it does not have a single unit of product or service output. For example local calls are measured by number of calls whereas mobile and long distance (STD) calls are timed in minutes. Internet services have measures based on downloads (bytes). 16.2.1. Give the units e.g. metric tonnes of CO2e per metric tonne of output or for service sector businesses per unit of service provided. 16.2.2. The resulting figure. Use a decimal point if necessary. Please use a “.” rather than a “,” i.e. please write 15.6 rather than 15,6 Further information 17. Emissions History: (CDP6 Q2(f)) 17.1. Do emissions for the reporting year vary significantly compared to previous years? Yes The 2008 emissions include an estimate for unmetered sites not reported in previous years. An unmetered site is a piece of equipment such as a roadside cabinet which does not have a meter but is charged a fixed amount based on the equipment energy rating. The inclusion of this estimate provides a more accurate picture of Telstra's electricity consumption. If the answer to 17.1 is Yes: 17.1.1. Estimate the percentage by which emissions vary compared with the previous reporting year. This box will accept numerical answers containing a decimal point. Please use "." not "," i.e. write 10.6, not 10,6. 4.4 % Have the emissions increased or decreased? Increased Further information Whilst fuel consumption in Telstra's fleet was reduced, Telstra's emissions for 2007-08 increased due to several factors. Firstly there was an increase in electricity consumption due to the concurrent running of the CDMA and Next G™ networks. The closure of the CDMA network in 2008 will remove this demand from our energy requirements. Secondly there was substantial growth in internet data centres in CBD sites, and some changes to site functionality. 18. External Verification/Assurance: (CDP6 Q2(d)) 18.1. Has any of the information reported in response to questions 10 – 15 been externally verified/assured in whole or in part? Yes, it has been externally verified/assured in whole or in part.(Please continue with questions 18.2 to 18.5) It would aid automated analysis of responses if you could select responses from the tick boxes below. However, please use the text box provided if the tick boxes menu options are not appropriate. 18.2. State the scope/boundary of emissions included within the verification/assurance exercise. Please use the text box below to describe the scope/boundary of emissions included within the verification/assurance exercise if the tick box menu options above are not applicable. During 2007-08, Telstra's energy and greenhouse data was subject to the verification process of the Australian Government's Greenhouse Challenge Plus Program. Telstra has been a signatory to this voluntary program since 2001. The rigorous process was

carried out by an independent auditor and provided valuable feedback to Telstra on the management and accuracy of its extensive data from over 14,000 sites and 12,000 vehicles. Details of the verification process can be found at http://www.climatechange.gov.au/greenhousefriendly/business/verification.html 18.3. State what level of assurance (eg: reasonable or limited) has been given. 18.4. Provide a copy of the verification/assurance statement. Please attach a copy/copies. 18.5. Specify the standard against which the information has been verified/assured. Australian Greenhouse Office Greenhouse Challenge Plus reporting requirements 18.6. If none of the information provided in response to questions 10-15 has been verified in whole or in part, please state whether you have plans for GHG emissions accounting information to be externally verified/assured in future. Further information 19. Data Accuracy: (CDP6 Q2(e) – New wording for CDP 2009) 19.1. What are the main sources of uncertainty in your data gathering, handling and calculations e.g.: data gaps, assumptions, extrapolation, metering/measurement inaccuracies etc? If you do not gather emissions data, please select emissions data is NOT gathered and proceed to question 20. Emission data is gathered. The electricity consumption data for unmetered sites is based on the total cost of electricity for these sites and an average energy cost per kWh. The electricity cost is based on the rated energy use of the equipment and is probably an overestimate. Refrigerant leakage is not included and is not thought to be material. This will be further assessed during 2009-10. 19.2. How do these uncertainties affect the accuracy of the reported data in percentage terms or an estimated standard deviation? Refer to 19.1 19.3. Does your company report GHG emissions under any mandatory or voluntary scheme (other than CDP) that requires an accuracy assessment? Yes (Please answer the following questions 19.3.1, 19.3.2). 19.3.1 Please provide the name of the scheme. Other Telstra has been a voluntary signatory to the Australian Government's Greenhouse Challenge Plus Program since 2001 and has publicly reported its emissions through this program up to 2007. The National Greenhouse and Energy Reporting Act (2007) will require Telstra to report energy consumption and production and greenhouse gas emissions from 2008-09. 19.3.2. Please provide the accuracy assessment for GHG emissions reported under that scheme for the last report delivered. Further information 20. Energy and Fuel Requirements and Costs: (New for CDP 2009) Please provide the following information for the reporting year: Cost of purchased energy 20.1. The total cost of electricity, heat, steam and cooling purchased by your company. 126000000 Select currency Australian dollar 20.1.1. Please break down the costs by individual energy type. Table 8 The “Cost” column will not accept text. Please use whole numbers only. Energy type Cost Currency Electricity 126000000 Australian dollar Heat Australian dollar Steam Australian dollar Cooling Australian dollar Cost of purchased fuel

20.2. The total cost of fuel purchased by your company for mobile and stationary combustion. 61000000 Select currency Australian dollar 20.2.1. Please breakdown the costs by individual fuel type. Table 9 The cost column will not accept text. Please use whole numbers only. Mobile combustion fuels Cost Currency Gasoline / petrol Australian dollar Diesel Australian dollar LPG Australian dollar Stationary combustion fuels Cost Currency Other petroleum products Australian dollar Natural gas Australian dollar Energy and fuel inputs The following questions are designed to establish your company’s requirements for energy and fuel (inputs). Please note that MWh is our preferred unit for answers as this helps with comparability and analysis. Although it is usually associated with electricity, it can equally be used to represent the energy content of fuels (see CDP 2009 Reporting Guidance for further information on conversions to MWh). Purchased energy input 20.3 Your company’s total consumption of purchased energy in MWh. Please use whole numbers only. 1267430 MWh Purchased and self produced fuel input 20.4. Your company’s total consumption in MWh of fuels for stationary combustion only. This includes purchased fuels, as well as biomass and self-produced fuels where relevant. Please use whole numbers only. 5316 MWh In answering this question and the one below, you will have used either Higher Heating Values (also known as Gross Calorific Values) or Lower Heating Values (also known as Net Calorific Values). Please state which you have used in calculating your answers. 20.4.1. Please break down the total consumption of fuels reported in answer to question 20.4 by individual fuel type in MWh. Table 10 Please use whole numbers only Stationary combustion fuels MWh Energy output In this question we ask for information about the energy in MWh generated by your company from the fuel that it uses. Comparing the energy contained in the fuel before combustion (question 20.4) with the energy available for use after combustion will give an indication of the efficiency of your combustion processes, taking your industry sector into account. 20.5. What is the total amount of energy generated in MWh from the fuels reported in question 20.4? Please use whole numbers only. 20.6. What is the total amount in MWh of renewable energy, excluding biomass, that is self-generated by your company? Please use whole numbers only. Energy exports This question is for companies that export energy that is surplus to their requirements. For example, a company may use electricity from a combined heat and power plant but export the heat to another organisation. 20.7. What percentage of the energy reported in response to question 20.5 is exported/sold by your company to the grid or to third parties? Please use whole numbers only. 20.8. What percentage of the renewable energy reported in response to question 20.6 is exported/sold by your company to the grid or to third parties? Please use whole numbers only. Further information Question 20.4 Energy purchased for stationery consumption includes diesel used for standby power generation at Telstra sites.

Question 20.6 Telstra is one of Australia's largest users of solar power with over 10,000 solar powered sites including exchanges, radio terminals, small repeater stations and payphones. Many of these sites are in remote locations enabling Telstra to provide telecommunication services to these remote locations. In June 2008 a hydrogen fuel cell test facility was installed at Telstra's Melbourne office headquarters. The hydrogen fuel cell, and a small set of solar panels are being trialled by Telstra Property, and their potential use in Telstra's network and buildings assessed. 21. EU Emissions Trading Scheme: (CDP6 Q2(g)(i) – New wording for CDP 2009) Electric utilities should report allowances and emissions using the table in question EU5. 21.1. Does your company operate or have ownership of facilities covered by the EU Emissions Trading Scheme (EU ETS)? No (Please go to question 22.) Please give details of: 21.2. The allowances allocated for free for each year of Phase II for facilities which you operate or own. (Even if you do not wholly own facilities, please give the full number of allowances). Table 11 Please use whole numbers only. 2008 2009 2010 2011 2012 Free allowances metric tonnes CO2 21.3. The total allowances purchased through national auctioning processes for the period 1 January 2008 to 31 December 2008 for facilities that you operate or own. (Even if you do not wholly own facilities, please give the total allowances purchased through auctions by the facilities for this period). Total allowances purchased through auction 21.4. The total CO2 emissions for 1 January 2008 to 31 December 2008 for facilities which you operate or own. (Even if you do not wholly own facilities, please give the total emissions for this period.) Total emissions in metric tonnes Further information 22. Emissions Trading: (CDP6 Q2(g)(ii) New wording for CDP 2009) Electric utilities should read EU6 before answering these questions. 22.1. Please provide details of any emissions trading schemes, other than the EU ETS, in which your company already participates or is likely to participate within the next two years. Telstra is participating (voluntarily) in the New South Wales Greenhouse Gas Reduction Scheme which aims to reduce greenhouse gas emissions associated with the production and use of electricity, and to develop and encourage activities to offset the production of greenhouse gas emissions. Telstra is creating abatement certificates by activities that result in reduced consumption of electricity (Demand Side Abatement). The Greenhouse Gas Reduction Scheme was created in 2002 through amendments to the Electricity Supply Act 1995 and the Electricity Supply (General) Regulation 2001. Telstra also participates (voluntarily) in the Australian Government's Mandatory Renewable Energy Target (MRET) scheme under the Renewable Energy (Electricity) Act 2000 where renewable energy certificates (RECS) are claimed. A REC represents a megawatthour of renewable electricity generated by Telstra solar sites. 22.2. What is your overall strategy for complying with any schemes in which you are required or have elected to participate, including the EU ETS? Telstra will comply with all mandatory requirements and work with government and industry groups on voluntary schemes within Australia. Further information 22. Carbon credits 22.3. Have you purchased any project-based carbon credits? Yes. (Please answer the following questions) Please indicate whether the credits are to meet one or more of the following commitments: The greenhouse gas emissions from Telstra's salary sacrifice vehicles are offset by Greenfleet a not for profit organisation which plants trees to offset vehicle emissions as well as reducing soil erosion and salinity and providing habitat for native species. Please also: 22.4 Provide details including the type of unit, volume and vintage purchased and the standard/scheme against which the credits have been verified, issued and retired (where applicable).

Details of the Greenfleeet program are available at http://www.greenfleet.com.au/ 22.5. Have you been involved in the origination of project-based carbon credits? No. (Please go to question 22.7) 22.6. Please provide details including: • Your role in the project(s), • The locations and technologies involved, • The standard/scheme under which the projects are being/have been developed, • Whether emissions reductions have been validated or verified, • The annual volumes of generated/projected carbon credits, • Retirement method if used for own compliance or offsetting. 22.7. Are you involved in the trading of allowances under the EU ETS and/or project-based carbon credits as a separate business activity, or in direct support of a business activity such as investment fund management or the provision of offsetting services? No. (Please go to question 23) 22.8. Please provide details of the role performed. Further information Performance 23. Reduction plans & goals: (CDP6 Q3(a)) 23.1. Does your company have a GHG emissions and/or energy reduction plan in place? Yes. (Please go to question 23.3) 23.2. Please explain why. It would aid automated analysis of responses if you could select a response from the options below as well as using the text box. However, please just use the text box provided if the options are not appropriate. If the menu options above are not appropriate, please answer the question using the text box below: Goal setting 23.3. Do you have an emissions and/or energy reduction target(s)? Yes. (Please answer the following questions) 23.4 What is the baseline year for the target(s)? 2000 23.5. What is the emissions and/or energy reduction target(s)? Goals for reducing emissions associated with electricity consumption are focussed on reducing actual consumption as opposed to offsetting. A program of works to implement projects to reduce energy and water consumption with associated reductions and savings is identified at the start of financial year and presented as a business case. A similar program has now been introduced for water efficiency projects. Investment for energy and water efficiency projects is approved under Telstra's Guidelines for Investment Evaluation and meets requirements for return on investment. 23.6. What are the sources or activities to which the target(s) applies? Telstra has programs to reduce greenhouse gas emissions due to – - Energy use for its properties - Energy use for its vehicle fleet - Waste disposal - Water use 23.7. Over what period/timescale does the target(s) extend? Each year an annual budget is approved for energy efficiency programs within Telstra's Property Management. This depends on the energy efficiency opportunities identified and their expected return on investment. Telstra currently invest in energy efficiency projects with a payback of 4 years or less. These projects meet the normal requirements for capital allocation and investment. As the shorter payback projects are completed and as energy prices rise there will be new projects which meet the investment criteria. Further information

23. GHG emissions and energy reduction activities 23.8. What activities are you undertaking or planning to undertake to reduce your emissions/energy use? Telstra has programs to reduce greenhouse gas emissions due to – - Energy use for its properties - Energy use for its vehicle fleet - Waste disposal - Water use Telstra's Property Group has an Energy Management team that is responsible for measuring and managing the energy used across the Telstra property portfolio of over 14,000 sites. As part of the Energy and Greenhouse Management Plan an Energy management team identifies potential energy savings actions and the payback period for the action. An annual budget is allocated to implement actions which will provide the greatest reduction in energy use and greenhouse gas emissions. Typical energy saving actions include those to increase the efficiency of lighting, air conditioning and power systems. Telstra's Fleet Management group monitors the fuel use of the fleet, and identify and introduce measures to reduce fuel use and fleet greenhouse gas emissions. Measures include the introduction of alternative fuels such as LPG vehicles and diesel vans for technicians, driver training in fuel efficient driving techniques, and offsetting the greenhouse emissions of the salary sacrifice vehicles through the Greenfleet Program which restores native habitat. GPS in technician’s vehicles that link into Telstra's job despatching system is one part of a suite of tools provided to technicians to improve route efficiency and productivity. Telstra's National Waste Management System aims to reduce waste disposed to landfill and increase recycling to maximise resource efficiency and minimise greenhouse gas emissions due to decomposition of waste. Telstra has launched the world's first mobile soft-switch using Ericsson's Blade Cluster servers. With the new Mobile Switching Centre Server Blade Cluster, network capacity can be increased by more than 500,000 subscribers by simply inserting a new electronics board, also known as a "blade", in the server cabinet. The innovative design reduces equipment floor space by 85%, cuts energy use by 75% and proportionately reduces greenhouse gas emissions. Further information 23. Goal evaluation 23.9. What benchmarks or key performance indicators do you use to assess progress against the emissions/energy reduction goals you have set? Return on Investment tonnes CO2/$million revenue Further information 23. Goal achievement 23.10. What emissions reductions, energy savings and associated cost savings have been achieved to date as a result of the plan and/or the activities described above? Please state the methodology and data sources you have used for calculating these reductions and savings. During 2007-08 savings in greenhouse gases were as follows – Savings from energy efficiency projects during 2007-08 9,605 tonnes CO2e Savings from energy efficiency in previous years 148,354 tonnes CO2e Waste recycling 15,727 tonnes CO2e Total 173,686 tonnes CO2e In particular, cost savings for electricity during 2007-08 were over AUS$16 million due to energy saving initiatives implemented since 2000. Further information is available in Telstra's Corporate Responsibility Report 2007-08 available at http://www.telstra.com.au/abouttelstra/csr/reporting_performance/reports.cfm 23.11. What investment has been required to achieve the emissions reductions and energy savings targets or to carry out the activities listed in response to question 23.8 and over what period was that investment made? Table 13 - The “Investment number” column will not accept text. Please use whole numbers only. Emission reduction target/energy saving target or activity Investment number Investment currency Timescale Energy Management Program for Properties 20000000 Australian dollar 2000 to 2009 Further information 23. Goal planning & investment Electric utilities should read the table in question EU3 for giving details of forecasted emissions.

23.12. What investment will be required to achieve the future targets set out in your reduction plan or to carry out the activities listed in response to question 23.8 above and over what period do you expect payback of that investment? Table 14 - The “Number” column will not accept text. Please use whole numbers only. Plan or action Investment number Investment currency Payback 23.13. Please estimate your company’s future Scope 1 and Scope 2 emissions for the next five years for each of the main territories or regions in which you operate or provide a qualitative explanation for expected changes that could impact future GHG emissions. If possible, please use table 15 below to structure your answer to the question or alternatively use the text box below. Scope 1 forecasted emissions in Table 15 below are in the following units. Scope 2 forecasted emissions in Table 15 below are in the following units. Table 15 - The “Scope” columns will not accept text. Please use whole numbers only. Type in the name of the territory or region for which you are giving data and then press “Add Territory/Region”. If giving a global figure instead of separate figures for regions or territories, please write “global” in the box labelled “Enter name of territory or region”. Click here to see a sample table. Future reporting years: End date for year end DD/MM/YYYY Emission forecasts Scope 1 Scope 2 Scope 1 Scope 2 Scope 1 Scope 2 Scope 1 Scope 2 Scope 1 Scope 2 23.14. Please estimate your company’s future energy use for the next five years for each of the main territories or regions in which you operate or provide a qualitative explanation for expected changes that could impact future GHG emissions. If possible, please use table 16 below to structure your answer to the question or alternatively use the text box below. Table 16 - Please use whole numbers only. Type in the name of the territory or region for which you are giving data and a description of the data you are giving e.g. electricity consumption. Then press “Add Row”. If giving a global figure instead of separate figures for regions or territories, please use the word “global”. This table will also accept different types of units e.g. units of volume or mass. Click here to see a sample table. Future reporting years: End date for year end DD/MM/YYYY Energy use estimates for territory/region Number Units Number Units Number Units Number Units Number Units 23.15. Please explain the methodology used for your estimations and any assumptions made. Further information 24. Planning: (CDP6 Q3(c)) 24.1. How do you factor the cost of future emissions into capital expenditures and what impact have those estimated costs had on your investment decisions? The Australian Government has stated its intention to introduce an emissions trading scheme in 2011. At this point in time there are still many variables in the proposed Carbon Pollution Reduction Scheme to be determined, therefore factoring in costs is not possible with any degree of accuracy. Internal Telstra working groups have been established to develop cost models in preparation for an emissions trading scheme in 2011. Telstra is currently reviewing the most effective way of factoring future emissions into capital expenditure planning processes. Further information Governance 25. Responsibility: (CDP6 Q4(a)) 25.1. Does a Board Committee or other executive body have overall responsibility for climate change? Yes. (Please answer question 25.3 and 25.4) 25.2 Please state how overall responsibility for climate change is managed and indicate the highest level within your company with responsibility for climate change. 25.3. Which Board Committee or executive body has overall responsibility for climate change? In keeping with the accepted standards of best practice corporate governance in Australia the Telstra Board has an executive director the CEO. The other members of the Board are independent, non-executive directors with the exception of Telstra’s Chief Financial Officer who is also a board member. The focus in Australian corporate law and governance practice is on the Board as a whole in the oversight of the company and issues facing the company it does not support or encourage the identification of specific responsibilities for individual directors beyond roles related to their membership of the Board (eg chairing board committees) and individual existing legal responsibilities (eg duty of care). The CEO is an executive member of the board and as such has overall responsibility for the management of the company and to report regularly to the board on matters of importance to the company. The Group Managing Director Human Resources reports

to the CEO and has specific responsibility for the development and implementation of the company's environmental management strategies. The Group Managing Director Telstra Network and Services is responsible for maintaining and operating the network under all conditions and has control of Telstra's Global Operations Centre which monitors the network under all conditions including disaster response plans. The Board and Telstra's commitment to climate change related issues and specifically greenhouse gas emissions is clearly evidenced in - - the establishment, with Boards approval, of the company's greenhouse program - the specific public reporting on this issue on telstra.com at http://www.telstra.com.au/abouttelstra/csr/environment.cfm and in a number of external reports at http://www.telstra.com.au/abouttelstra/csr/reports.cfm In addition, the Board approved the Telstra Business Principles (TBPs) in March 2005. The TBPs describe the way we work and are a key component of our corporate governance framework. One TBP addresses environmental issues and refers to the Environment Policy. The CEO approved Telstra's updated Environmental Policy in November 2006. The Environment Policy specifically requires Telstra to - "Be responsive to the environmental concerns of our customers and the communities in which we operate" and "Investigate and implement, where appropriate, programs to improve the efficiency of our resource consumption". 25.4. What is the mechanism by which the Board or other executive body reviews the company’s progress and status regarding climate change? The Board Audit Committee (BAC), which includes at least 3 Board members, provides a conduit to the Board for external advice on audit, risk management and compliance matters. The BAC can request reports or briefings from within Telstra on the management of any issue, including progress and status regarding climate change. Further information 26. Individual Performance: (CDP6 Q4(b)) 26.1. Do you provide incentives for individual management of climate change issues including attainment of GHG targets? Yes. (Please go to question 26.2) 26.2. Are those incentives linked to monetary rewards? Capital funding provided for energy efficiency programs must meet Telstra's financial requirements regarding return on investment. 26.3. Who is entitled to benefit from those incentives? Further information 27. Communications: (CDP6 Q4(c)) 27.1. Do you publish information about the risks and opportunities presented to your company by climate change, details of your emissions and plans to reduce emissions? Yes If so, please indicate which of the following apply and provide details and/or a link to the documents or a copy of the relevant excerpt: 27.2. The company’s Annual Report or other mainstream filings. Yes From the 2008 Director's Report page 62 Environmental Regulation and Performance “Telstra's operations are subject to significant environmental regulation under Commonwealth, State and Territory law, particularly with regard to: - the impact of the rollout of telecommunications infrastructure; - energy and water efficiency; - packaging of products; - site contamination and pollution; and - waste management. Telstra is subject to the Energy Efficiency Opportunities Act 2006. We registered on 31 March 2007, and submitted our Assessment and Reporting Schedule on 24 December 2007 as required by the legislation. Telstra notes that the National Greenhouse and Energy Reporting Act2007 (Cwlth) has come into force and Telstra will be a party who is required to register under that Act. Telstra is closely following the developments of the Federal Government's Carbon Pollution Reduction Scheme which is proposed to come into operation in 2010. Telstra has well established procedures to monitor and manage compliance with existing environmental regulations and new regulations as they come into force.

The directors are not aware of any significant breaches of environmental regulation during the financial year.” 27.3. Voluntary communications (other than to CDP) such as Corporate Social Responsibility reporting. Yes Corporate Responsibility Report at http://www.telstra.com.au/abouttelstra/csr/index.cfm National Packaging Covenant at http://www.telstra.com.au/abouttelstra/csr/reporting_performance/reports.cfm Dow Jones Sustainability Index at http://www.telstra.com.au/abouttelstra/csr/reporting_performance/reports.cfm Further information Telstra also publishes a report as required by the Energy Efficiency Opportunity Act 2006 available at http://www.telstra.com.au/abouttelstra/csr/reporting_performance/reports.cfm 28. Public Policy: (CDP6 Q4(d)) 28.1. Do you engage with policymakers on possible responses to climate change including taxation, regulation and carbon trading? Yes Telstra is involved in the consultation process for new legislation e.g the proposed Carbon Pollution Reduction Scheme. Telstra's formal submissions are publicly available at the relevant government public consultation sites. As part of Telstra's engagement with the Department of Industry, Tourism and Resources who administer the Energy Efficiency Opportunities Act, Telstra is active in the Community of Practice for Representative Assessments along with other companies with a large property portfolio. Communities of Practice focus on industry-led cooperative knowledge and learning, and seek to complement the Department's commitment to comprehensive consultations on program policy and development issues.

Telstra has active representation in Australian Mobile Telecommunication Association which has climate change in scope. Telstra is involved in an industry environmental task group of the Australian Industry Group. Telstra's Corporate Environment group regularly meets with EPAs and Commonwealth Departments and has an open door policy to government policymakers. Telstra has staff whose role is government liaison. The Corporate Environment Group attends industry seminars where policymakers speak and attend. A Corporate Environment Managers Group was established by Telstra's Corporate Environment Group in 2006 and enhances Telstra's engagement with other influential Australian corporations. Further information Supplier Module SM 1 Ability to Split Scope 1 and 2 Emissions by Business Category The aim of these questions is to help your customers estimate the extent to which your Scope 1 and Scope 2 emissions are linked with their purchases of services or goods from you. Please note that we use the term “product” to cover both goods and services. SM 1.1 Are you able to break down your total Scope 1 and Scope 2 emissions by the following categories: • Business division • Business unit • Factory • Product group • Other Please give details in each case. Business division? Business unit? Yes Details of individual business unit emissions were provided in the 2008 CDP Supply Chain Initiative Report submitted in September 2008 based on the financial year 2007-08.

Due to the change in the Supply Chain reporting time this will be updated for the 2008-09 financial year and will be reported in the 2010 CDP report. Factory? Product group? Yes Telstra has developed a model using Life Cycle Assessment methodology to estimate the greenhouse gas emissions due to the energy use of its product and service types such as voice, mobiles and data. This allows an estimation of the emissions due to products and services to be provided to a customer based on the number of each product or service offering. Other Unable to breakdown by category? Further information SM 1.2 Splitting Scope 1 and Scope 2 Emissions by Category SM 1.2. Using your preferred method (question SM 1.1) for splitting emissions, please consider what are the five biggest emitting categories (e.g. business units or product groups) for your company? For each of the five biggest emitting categories, plus any other categories specified by your customer(s), please complete the table SM1.2. Click here to see a sample of a completed table. Please complete this table. Use the figure given in answer to question 11.1. as the basis for your Scope 2 emissions. Category e.g. business division, business unit, factory, product group. Total emissions (number) Total emissions Units of measure e.g. metric tonnes CO2-e Do these represent emissions from Scope 1 only, Scope 2 only, or both? Output Units Major emission Sources Group 1 Group 2 Group 3 Group 4 Group 5 Other Total Further information SM 1.3 Methodology SM 1.3. Please explain how you have identified the GHG sources listed in the previous question, including major limitations to this process and assumptions made. Describe your system for allocating emissions to the groups in the table. Where published information has been used, please provide a reference(s). Give the degree of confidence that you have in the figures expressed as a percentage, e.g. you estimate that they are accurate to +/15%. If the allocation of emissions to different categories has been externally verified, please give details. To better understand the carbon impact of Telstra products and services, and to be able to respond to customer needs, Telstra has calculated the energy use and greenhouse gas (carbon) emissions resulting from provision of its products and services to a major customer. The study determined the impact for both Telstra and the customer, allowing both corporations to better understand and manage the energy and emissions impacts of the telecommunications products and services provided to the customer. Life Cycle Assessment (LCA) methodology was followed. The study is restricted to operational energy consumption due to the complexity of products and services used by the customer, and as such is a partial LCA. Embodied energy or other material environmental impacts were not considered. Allocation rules were developed to apportion Telstra’s network energy use to specific Telstra products and services.

Although a partial LCA was completed, ISO Guidelines were used as guidance for this study (AS/NZS ISO 14040:2006(E), AS/NZS ISO 14044:2006). The recommended steps for scope and goal definition, life cycle mapping, life cycle inventory and life cycle impact assessment were followed. Both internal and published data were used for the study. Internal data included energy use for typical equipment used by Telstra and that provided as customer premises equipment. Published data was also used from Telstra and the customer's Corporate Responsibility and Annual Reports. Telstra has further explored the impact of ICT technologies such as video conferencing, teleworking, web contact centres and fleet and field force management solutions on sustainability. Telstra can help its customers quantify the strong commercial, environmental and societal benefits potential which can potentially be realised using ICT as a driver of sustainability strategies through sophisticated ROI tools. This is further explored in a joint Telstra – WWF white paper “Using ICT to drive your sustainability strategy” available at http://www.telstraenterprise.com/researchinsights/Pages/Sustainability.aspx Further information The results of the study were unexpected with a significant impact at the customer's sites. This has allowed the customer to focus on energy use for equipment and update their procurement processes to ensure energy and carbon is considered as well as costs and normal commercial decisions. SM 1.4 Challenges and Developments What are the challenges in allocating emissions to different business categories and what would help you to overcome these challenges? Please describe whether and how you plan to develop your capabilities to allocate your emissions in the future. 1. Business unit allocation Lack of electricity data for individual business unit use especially for buildings (or floors) shared by several business units. Instead used total commercial electricity use and apportioned by spend on accommodation. It is recognized that this is approximate given different accommodation costs per sq m for different buildings and cities. For vehicle use emissions a report generated for fuel type and use by organisation code. It was necessary to manually allocate fuel use as a business unit report is not set up. Taxi and air travel emissions were estimated based on cost (and total air km travelled). Next year it is intended to improve air and taxi travel by requesting data at business unit level. 2. Product and Service allocation Overlap of network for different products and services, hence allocation rules were developed to apportion network energy to different products and services. Further information SM 2. Your engagement with your suppliers Your customers want to engage with you to learn more about the emissions from their immediate suppliers. The purpose of this section is to find out what you in turn are doing to engage with your own suppliers. SM 2.1 Do you have a strategy for engaging with your suppliers on their GHG emissions and the impacts of climate change on their business? If so, please provide details of this strategy. To give a sense of the scale of this engagement, please include the number of suppliers with whom you are engaging and the proportion of your total spending that they represent. If you do not have a strategy, please explain any plans you have to develop one in the future. Yes Construction and Maintenance Contractors Contractor Information Days were held nationally for our major construction and maintenance contractors to provide information to the contractors on carbon awareness and introduce Telstra's future strategies and new requirements for contractors to provide information to Telstra in certain circumstances on their greenhouse gas emissions for work carried out on behalf of Telstra. The Contractor Information Day also provided an opportunity for contractors to provide feedback to Telstra on perceived issues and problems and share information. Suppliers Telstra has held a workshop for its suppliers on "Sustainability in the Supply Chain". Benchmarking Research Telstra's spend for goods and services is over $5 billion per year. Benchmarking Research has been conducted on major suppliers to Telstra to determine their carbon intensity and comparing it to the services they provide and how much Telstra spends on

these services. This allows Telstra to map the known risks and determine the unknown risks such as high spend and high carbon intensity and be better prepared for carbon cost pass through. Further information SM 2.2 Use of data If you have data on your suppliers' GHG emissions and climate change strategies, please explain how you make use of that data (for example: identifying major GHG sources to prioritise emissions reduction actions, identifying physical risks in the supply chain, stimulating innovation, etc). Telstra will be collecting data on some suppliers' greenhouse gas emissions for the 2008-09 financial year. It is intended to use this data to – - meet the reporting requirements of Australia's National Greenhouse and Energy Reporting Act 2006 - identify carbon intensive suppliers whose costs may be affected in the future - identify where savings in carbon and efficiency improvements can be made by both suppliers and Telstra Further information SM 3. Emissions over the lifecycle of goods and services SM 3.1. Please list any major successes and/or planned activities to reduce GHG emissions in the lifecycle of groups of products or individual products, including an estimate of the possible reductions for each initiative. Telstra's Property Management and Fleet Management Groups have reduced the overall energy intensity of Telstra's operations through its energy management program. This has the effect of reducing the emissions attributable to all products. SM 3.2 Do you offer customers information or steps they can take to reduce the GHG emissions associated with use of your products, and in the case of goods with their disposal? Please give examples. Yes In 2007 Telstra released a commissioned report by climate change consultants Climate Risk Pty Ltd, "Towards a High-Bandwidth Low-Carbon Future; Telecommunications-based Opportunities to Reduce Greenhouse Gas Emissions". A copy of the report can be downloaded from Telstra's website at http://www.telstra.com.au/abouttelstra/csr/society/climate_change.cfm The report identifies seven opportunities using telecommunications networks and digital products which if implemented, could lead to a reduction in Australia's emissions by almost 5% by 2015. This depends on the existence of pervasive and highly integrated broadband networks, connecting into sensing and control devices with sophisticated applications. Since 2007 Telstra has completed two studies to measure the environmental benefits of teleworking compared with working in an office and online billing compared with conventional paper billing. Both these studies use Life Cycle Assessment (LCA) methodology based on the ISO 14040 standards and have been peer reviewed by an independent LCA expert. Both reports are available at http://www.telstra.com.au/abouttelstra/csr/environment/initiatives.cfm Telstra has calculated the carbon footprint for the Telstra product and service offering to a major customer. This information is now being used to calculate the footprint of enterprise and government offerings for other customers. In April 2009 Telstra and the WWF Australia launched a white paper that highlights how Information and Communication Technology (ICT) can improve environmental sustainability for large organisations and deliver positive commercial outcomes. It also introduces a set of tools to enable Australian enterprise and government organisations to estimate the environmental and financial benefits of ICT investment. Using the Return on Investment (RoI) tools developed by Telstra and Capgemini, organisations can estimate the commercial and environmental savings from investing in four specific ICT solutions – video conferencing, flexiworking, web contact centres and field force management. The tools estimate greenhouse gas emission reductions and employee productivity outcomes by assessing the financial costs and savings to the company for each alternative. The white paper is available at http://www.nowwearetalking.com.au/news/addressingsustainabilityandputtingmoneyinthebank220 Online billing is offered to all Telstra customers. Disposal Telstra supports the Mobile Muster program coordinated by the Australian Mobile Telecommunications Association (AMTA). Mobile Muster collects disused mobile phones, batteries and accessories for recycling. Telstra Shops are drop off points for disused mobile phones. Telstra rental handsets are returned to Telstra for recycling. Further information SM 3.3 and 3.4 Individual Request Questions

Some suppliers may have customers who request that they provide estimates of GHG emissions over a particular product’s lifecycle. Others may have estimated this information for their own purposes and wish to publicise it. If you fall into either group, please answer the following question and then complete the table SM 3.4. SM 3.3 Please give details of the method that you have used to estimate lifecycle emissions. State if you have followed a published procedure (e.g. ISO 14040 & 14044 or PAS 2050) or one that you have developed yourself. Clearly define the good or service for which data is being given and the boundary of your assessment. Please make it clear which GHGs and GHG sources are included in your assessment. If relevant GHGs and GHG sources are excluded, please describe them and give reasons for omissions. Give references to data sources used. If you are giving life cycle assessment (LCA) information for more than one product, please use this text box to describe your methodologies, each time making it clear to which product you are referring. Yes refer to SM 1.3 SM 3.4. Emissions over the lifecycle of goods and services An example of the lifecycle stages of a service might be in the case of a hotel stay check in, use of room, check out, cleaning. Further information

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