BT''s progress on the principles, and the experience we have gained in their application, is reflected in our independently verified Social and Environmental report.

For evidence of Board-level support for the Global Compact, see our Chief Executive''s introduction.

We believe that the best way to demonstrate support for, and compliance with, the Global Compact is by:

1 - Demonstrating that our Social and Environmental report covers all ten principles (see table)

2 - Leading the debate on the challenges of sustainable development and corporate social responsibility, as we do with our Occasional Papers

3 - Providing opportunities for interactive dialogue. We intend to hold an on-line debate during the 2006 financial year.

This Communication on Progress summarises the key sections of our report as they relate to the Global Compact''s principles. There are links to further information such as measures, lessons learned and next steps.

Principles 1and 2 :

The Human rights section of the report summarises BT''s approach to . BT''s potential impact - both positive and negative - on human rights is managed by a number of departments and units throughout the business.

Principle 3:

The Employee relations section of the report sets out our relationship with trade unions.

The Human rights in the supply chain section contains details of BT''s efforts to ensure freedom of association in our supply chain.

Principles 4 and 5 : .

The Human rights in the supply chain section presents information on BT''s efforts to eliminate forced and child labour in our supply chain.

.

Principle 6:

The Diversity and inclusivity section sets out BT''s policies and practices relating to the elimination of discrimination in our own employment practices.

The Human rights in the suplly chain section contains details of our efforts to eliminate discrimination in our supply chain.

Principle 7:

The Mobile communications and health section sets out BT''s approach to this issue.

Principle 8:

The Environment section presents the positive social and environmental impacts of communications technology.

Principle 9:

The Benefits section presents the positive social and environmental impacts of communications technology.

Our eBusiness and the environment ''Hot Topic'' is an independent study into the benefits of BT''s own use of teleworking and conferencing.

Principle 10:

Our Statement of Business Principles, The Way We Work details BT''s business principles which apply world-wide to all employees, agents, contractors and others when representing BT. These contain a specific principle on inducements. Progress on our implementation of these principles can be found in the Business Principles section of our report.