TELUS takes a long-term approach to our CSR strategy and reporting. We work to achieve continuous improvement in support of fulfilling our long-term goals. In developing our CSR strategy, TELUS gathered input from internal and external stakeholders. They include contributors to the report, TELUS executives, community members and several external CSR experts.

We have created a roadmap for the future, establishing ways to improve our disclosure on issues of materiality, linking them more closely to our annual report and GRI criteria and incorporating what we believe the triple bottom line represents. In addition, after analyzing last year’s report, we determined we would drive improvements in three areas:

• CSR process (how we build the report)
• Content (what we put in the report)
• Media (how we share the report information).

This year, our approach has resulted in a more tightly managed reporting process, a more narrowly focused printed report, a more elaborate Internet version, and multiple platforms of media for distribution. These media include a printed report, a web report at telus.com/csr, a brochure and an interactive web-based display for the 2008 annual and special meeting of shareholders.

To close some current gaps, our roadmap calls for:

• More reliance on all-digital reporting in the future
• Better use of systems to gather more accurate information and generate reports
• Further embedding CSR strategy and reporting into our everyday business processes
• Greater reporting and transparency on TELUS’ small but growing international operations.

CSR governance

At TELUS, we believe strong corporate governance provides the foundation for successfully implementing a sound CSR strategy. Overall responsibility for CSR performance of the organization resides with the executive team.

The CSR leadership team was established at the end of 2006 and expanded to include more business units in 2007. Based on strategic input from external and internal sources, the directors within the CSR leadership team are responsible for identifying issues and opportunities and delivering programs to address them. TELUS’ executive team and business unit vice-presidents are responsible for approval of the overall strategic direction of our CSR programs.

The CSR leadership team meets quarterly or more frequently as required to address specific CSR issues. Programs requiring approval are presented to the executive team and business unit vice-presidents as needed. Twice a year, detailed progress reports are provided to the executive team and quarterly, higher-level progress reviews are provided to the Audit Committee of the TELUS Board.

To support the execution of our CSR strategy in 2008, we have strengthened our CSR team and will make sustainability an important principle in our decision-making at TELUS.

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strategic input

A number of different sources guide our CSR strategic decisions, including:

• External stakeholders – shareholders, customers, nongovernmental organizations, peer organizations, former executives, socially responsible investment companies, government, TELUS Community Boards, suppliers
• Internal stakeholders – team members, business unit leadership
• External verification of data collection processes and data integrity
• Guidelines for reporting (e.g. the Global Reporting Initiative)
• TELUS enterprise risk assessment
• Industry organizations (e.g. Global e.Sustainability Initiative, Canadian Business for Social Responsibility).

Based on the strategic input we receive, we develop new CSR programs, modify existing programs as necessary and identify major issues. In 2007, we held our first external stakeholder panel to gain input and feedback relating to our CSR efforts. With the information gained from that panel and from various internal meetings held with business unit representatives throughout the year, we identified the following major issues of focus for 2008 and beyond:

• Climate change
• Team member attraction and retention
• Impact of our community investment strategy
• Broader economic impact of our operations
• Role and scope of our international operations
• Extending our influence in the supply chain
• Customer satisfaction.

The 2008 CSR priorities presented on page one of this report and the following discussion on issues and opportunities provide further insight into how TELUS will address the first four issues in the list above. The remaining three will be investigated further and prioritized in 2008.

business and management practices

At TELUS, business risk is defined as the degree of exposure associated with key strategic, financial, organizational and process objectives in relation to the effectiveness and efficiency of operations, the reliability of financial reporting, compliance with laws and regulations, and the safeguarding of assets within an ethical organizational culture.

To ensure alignment with the triple bottom line, TELUS uses an enterprise-wide risk and control assessment process that solicits and synthesizes the expertise and insight of team members from all areas of the business. This process seeks to address key risks to TELUS, including those related to CSR. More information on our risk assessment process is available in section 10 (Risks and risk management) of the 2007 annual report at telus.com/annualreport. Information on financial liabilities is listed in the Consolidated financial statements and notes section of the report.