2014 DIRECTV Corporate Social Responsibility Report

(L-R) SolarCity CEO Lyndon Rive, DIRECTV Chairman, President and CEO Mike White and DIRECTV Executive Vice President of Services and Operations Mike Palkovic attend the DIRECTV CBC Solar Groundbreaking event with SolarCity in Long Beach, Calif. on March 11, 2015.

Strategy

DIRECTV views sustainability as a critical issue for our industry, and we aspire to lead through fulfilling our commitments. We continue to demonstrate industry leadership in sustainable business practices, identifying new ways to reduce the environmental impact of our operations and products. Our company helps mitigate climate change by reducing the energy consumption of our products, increasing the energy efficiency associated with our operations and implementing renewable energy where feasible. We also look beyond our own operations to leverage the opportunity to advocate for environmental progress.

We call our enterprise-wide sustainability effort Televisionary.1 Responsibility for this effort begins at the highest level of our organization – the DIRECTV board of directors and its Nominating and Corporate Governance Committee. Oversight by executive leadership is executed through the Corporate Social Responsibility (CSR) Steering Committee, a decision-making body composed of senior company leaders. The committee has oversight responsibility for the company’s environmental performance, policies and product attributes and periodically reviews progress against our stated objectives.

Three Televisionary working groups — Operations, Engagement and Product — engage in day-to-day development and implementation of sustainability initiatives. We draw working group representatives from a range of departments and job functions, and the groups are organized to leverage the multi-disciplinary expertise of team members.

We continued to evolve our Televisionary strategy in 2014 to take our environmental performance to a higher level. Highlights include establishing DIRECTV’s first capital budget for investing in sustainability projects, implementing measures to improve the recovery of scrap receivers from customers, enhancing transparency and data reporting and undertaking innovative partnerships with utilities and others in support of renewable energy.

During the past year, we also formally established a sustainability program in Latin America as part of convening a summit of DIRECTV leaders in the region who work on sustainability issues. Initial priorities include establishing data collection protocols and understanding existing local sustainability efforts.

1Televisionary is a trademark of Ericcson Television, Inc. and is used with permission.

Sustainability Indices

In 2014, DIRECTV was added to the Dow Jones Sustainability Index (DJSI) in the North America index in the Media category. Only the top-ranked companies in terms of Corporate Sustainability within each industry are selected for inclusion in the DJSI. DIRECTV was also included in the CDP Performance Leadership Index, which reveals which companies are doing the most to combat climate change.

We have established specific and achievable goals for continued improvement. Accurate measurement and transparent reporting of our performance is a critical part of our sustainability mission. We have implemented processes across our organization to collect and report key performance metrics, and we have aligned our sustainability initiatives with these primary operations, product and engagement goals for the U.S. and Latin America.

United States

Operations Goals

  • Reduce combined Scope 1 and Scope 2 emissions by 40 percent by 2020 against our 2011 baseline.
  • Reduce the amount of waste entering landfills by 95 percent by 2020 against our 2012 baseline.
  • Recycle or refurbish one receiver for every new receiver purchased by DIRECTV.

Engagement Goals

  • Establish best-in-class sustainability governance policies across the organization and supply chain.
  • Increase stakeholder sustainability awareness.
  • Improve reporting and sustainability performance.

Product Goals

  • Decrease customer emissions by 1 million metric tons of CO2 per year by 2020 against our 2012 baseline.
  • Improve sustainability performance of DIRECTV products and packaging.
  • Reduce the amount of disposable materials used by DIRECTV by 25 percent by 2020.
LATIN AMERICA

Operations Goals

  • Recycle 100 percent of the scrap electronic waste collected by DIRECTV with R2-certified recyclers by 2015.
  • Establish measurement procedures to determine DIRECTV’s waste generation (in tons) and waste-to-landfill percentage by 2017.
  • Reduce greenhouse gas emissions per square meter by at least 10 percent from existing DIRECTV/SKY-operated facilities from a 2013 baseline by 2017.

Engagement Goals

  • Ensure 100 percent of suppliers of electronic components comply with DIRECTV’s Supplier Code of Conduct.
  • Engage with our 10 largest suppliers (as a percentage of spend) on sustainability opportunities, particularly related to energy, carbon footprint and electronic waste.

Product Goals

  • Commit to ENERGY STAR® certification for all new receivers through 2016.
  • Reach at least 50 percent penetration of ENERGY STAR certified receivers regionwide by 2017.