Our commitment to corporate
reporting and governance leadership

At TELUS, a commitment to honest, thorough and transparent reporting underpins what we do. Each year, we seek opportunities to improve our corporate reporting and governance. The result is comprehensive governance and disclosure practices that reflect our corporate values, high standards and drive for excellence.

Growing list of enhancements

For 2006, we maintained our focus on good corporate governance and continued to seek out opportunities for improvement. Notably, TELUS is in full compliance with the corporate governance standards of Canadian securities regulators and the applicable standards of the New York Stock Exchange (NYSE). The new practices we adopted in 2006 include:

• Adopting a majority voting policy in 2007 on the election of directors, which furthers the principle that directors should only be elected if they receive a majority of the votes of shareholders represented at the meeting
• Removing the mandatory retirement age for Board members, enabling us to retain high-performing directors
• Improving the quality of our disclosure relating to executive compensation for 2006 to present more easily understandable information to shareholders
• Starting a regular practice of quarterly reporting by the Respectful Workplace Officer to the Human Resources and Compensation Committee
• Enhancing opportunities for strategy discussions with the Chief Executive Officer by introducing a new "Ask the CEO" in-camera strategy and key issue discussion at regular Board meetings to supplement existing sessions.

Going above and beyond

We believe, with regards to corporate governance and reporting, that it is our responsibility to go above and beyond what is legally required for the benefit of our investors.

Some of the voluntary practices we have in place include:

• Voluntary compliance with the NYSE Board of Directors independence criteria
• Having the Chief Compliance Officer report to the Audit Committee on a quarterly basis
• Making continuous improvements to our sophisticated enterprise risk management processes by:
  • Conducting extensive enterprise risk and control assessment surveys and updating our key risk profile and internal audit program throughout the year
  • Assigning executive-level owners for mitigation of key risks and having them provide briefings to the Audit Committee
  • Further integrating information between the ongoing strategic planning process and our enterprise risk assessment activities
• Continuing to blend the more comprehensive management's discussion and analysis (MD&A) framework recommended by the Canadian Institute of Chartered Accountants (CICA) with the required disclosure framework of the Canadian Securities Administrators
• Publicly disclosing our corporate disclosure policy, insider trading policy, and entire Board policy manual, including all of the Board committees' terms of reference, not just the Audit Committee's terms of reference as is required. This information is available at telus.com/governance
• Voluntarily initiating in mid-2006 an internal audit of our stock option and long-term incentive compensation practices, which resulted in a "well controlled" rating.