2021
Integrated Annual
Report
2021
Integrated Annual
Report
02
Orange’s seventh integrated annual report was prepared within the framework of the
International Integrated Reporting Council (IIRC). It integrates the Orange group’s social,
ethical, environmental and economic data within its business model and strategy. The
purpose of the report is to demonstrate the sustainable value that Orange creates for all its
stakeholders. It does so by presenting the strategic vision of the Group and its financial and
non-financial performance, which includes environmental, social and governance
performance indicators.
The report is sponsored by three members of the Executive Committee—Ramon Fernandez
(Delegate Chief Executive Officer and Executive Vice-President Finance, Performance and
Development), Béatrice Mandine (Executive Vice-President Communication, Brand and
Engagement) and Élizabeth Tchoungui (Executive Vice-President CSR, Diversity and
Philanthropy for the Group). The Shareholder Relations Department is responsible for
drafting and publishing the Integrated Annual Report, a collaborative report that brings
together information and contributions from the Group’s main operating countries and
departments. The steering committee involves representatives from Shareholder Relations,
CSR, Legal, Strategy, Brand and Risk Management Departments.
Orange
03
Contents
04 — Joint interview
with Christel Heydemann and Stéphane Richard
10 — Orange at a glance and Purpose
12 — Trends
14 — Our strategy
16 — Our business model
20 — Key performance indicators
22 — Our contribution to the UN 2030 Agenda
for Sustainable Development
24 — The meaning behind our actions
26 — Infrastructure:
successful investments
42 — Growth areas:
accelerated development
58 — Environment:
net zero carbon target
70 — Social:
a digital world that serves
humanity
84 — Governance:
responsibility, integrity,
independence and
transparency
104 — Financial and non-financial
results
Orange has been heavily investing in
new-generation digital infrastructure for many
years. This ground-breaking expansion enables
us to fulfill our role as an essential operator,
providing connectivity to as many people as
possible.
Our networks are the foundation for developing
innovative and responsible digital services. This
multi-service strategy has proven to be
successful in Africa, the Middle East and Europe.
To achieve net zero carbon emissions by 2040,
the Group relies on a threefold strategy—
reducing its carbon emissions, increasing its
use of renewable energies and expanding its
circular economy program.
As a telecommunications operator, we have a
prominent social role to play when it comes to
all our stakeholders and at the heart of the
regions where we operate. Orange supports the
significant digital transformations shaping
online and offline environments.
Orange’s governance team develops and
implements a long-term growth strategy that
ensures operational performance, ethical
requirements and optimal risk management are
taken into consideration.
2021 Integrated Annual Report
04
Joint interview
with Christel Heydemann and
Stéphane Richard
Orange has now separated the roles of Chair and Chief Executive Officer.
Stéphane Richard, you will continue to serve as Chairman until the
Shareholders’ Meeting on 19 May. Christel Heydemann, you took over as
Chief Executive Officer on 4 April. How do you feel about this new chapter
for the Group?
Stéphane Richard: First, I’d like to thank everyone in the Group for all their hard
work over the past 12 years. Their commitment to our customers and flair for
innovation have contributed to strong Group performance. Together, we took
chances to drive our growth and strengthen our network leadership—and they
paid off. I am delighted to welcome my successor as Orange CEO,
Christel Heydemann, and wish her every success in her new role. I got to see
her strategic vision, in-depth knowledge of industry challenges and numerous
personal qualities for myself during her five-year term on the Board of Directors
and firmly believe they will stand her in good stead as she and all our teams rise
to future challenges.
Christel Heydemann: In recent years, Orange teams have shown their strong
work ethic, excellence and ability to adapt through our infrastructure.
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05
“Investing in
high-performance,
intelligent, secure and
energy-efficient
networks ensures our
industrial strategy is
sustainable while
connecting growing
numbers of
people worldwide.”
f Stéphane Richard, Chairman
2021 Integrated Annual Report
“The acceleration
of companies’
digital transformation
presents a major
opportunity. Our rich
expertise enables
us to seize
this opportunity.”
f Christel Heydemann, Chief Executive Officer
06
Joint interview
“Digital technology is key
to reconciling energy
performance with
economic performance.
As an industry leader,
we have a twofold
responsibility.”
f Christel Heydemann, Chief Executive Officer
I am honored to join the company as CEO and contribute to its development by
responding to the many challenges that lie ahead. I would like to thank the
Board for putting their trust in me. Ready to give this position my all, I feel
motivated and determined and fully appreciate the responsibilities I am
undertaking. Furthermore, I know that I can count on our strong, committed
teams to help steer the company to success.
What challenges lie ahead and how will the Group overcome them?
C.H.: The acceleration of companies’ digital transformation presents a major
opportunity. Our rich expertise as an operator and a digital service integrator
enables us to seize this opportunity and act as a strategic partner to our
customers in terms of cybersecurity, cloud computing, artificial intelligence and
so on. The Group also needs to restore its growth in Spain, a highly difficult
market where we face intense competition from low-cost brands. That’s why we
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07
have entered into exclusive negotiations with MásMóvil with a view to merging
our operations and creating a super operator in the Spanish market. The
primary challenge in France will be supporting copper-to-fiber migration
nationwide to offer everybody the best connectivity possible. That’s why we
teamed up with long-term investors in November 2021 to launch Orange
Concessions, which aims to operate 4.5 million FTTH connections in
6,500 communities by 2025. Orange’s powerful Purpose can help us rise to
these challenges and turn them into shared successes.
How can the Group reduce its carbon emissions in line with its ambitions?
C.H.: Digital technology is key to reconciling energy performance with
economic performance. As an industry leader, we have a twofold
responsibility—we need to proactively reduce our carbon emissions and help
our customers improve their energy performance. To achieve net zero carbon
emissions by 2040, we must make unprecedented strides in terms of boosting
energy efficiency, using low-carbon energy sources and working with all our
partners. Demand for more modern networks presents a wonderful opportunity
for us to support the transition from copper to fiber and decommission 2G and
3G networks. Furthermore, the Group has made progress in applying
eco-design principles to equipment design, as well as in recycling, collecting
and reconditioning equipment every year since it launched its extensive circular
economy program. Just as a circular economy requires changes in behavior
and production methods, it also helps identify new opportunities for innovation
and growth. What’s exciting about building a circular economy is that it’s a team
effort.
The Group has heavily invested in deploying new-generation digital
infrastructure—has this strategy paid off?
S.R.: Definitely. Investing in high-performance, intelligent, secure and
energy-efficient networks ensures our industrial strategy is sustainable while
connecting growing numbers of people worldwide. We made an ambitious
decision in the 2010s to become one of the first large investors in fiber optics
2021 Integrated Annual Report
08
Joint interview
“5G will give companies
a decisive edge
over their competitors
in the coming years.”
f Stéphane Richard, Chairman
and are now the European fiber leader, with over 56 million connectable homes
and almost 12 million customers. We have also deployed 5G networks in
six European countries. Although the 5G story has only just begun, this new
technology will give companies a decisive edge over their competitors in the
coming years. We also hold a leadership position in the European convergence
market, with 11.5 million customers. These outstanding levels of commercial
performance are complemented by higher levels of customer satisfaction and
provide a solid foundation to build on in the future.
What growth areas has the Group identified?
C.H.: More digital societies bring new threats, notably in the form of
cyberattacks, which increased fourfold between 2019 and 2020 in France. The
Group’s cybersecurity arm, Orange Cyberdefense, enjoyed double-digit growth
in 2021 and our experts continue to develop solutions designed to better
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09
protect customer data and IT systems. Our growth in Africa and the Middle East
is particularly strong, with mobile data revenues up 25.2% and fixed broadband
revenues up 23.5%. Lastly, diversification into a broad range of services
including finance, connected homes and energy is another growth area.
How is the Group affected by the current international geopolitical tensions?
S.R.: Our number one priority everywhere is ensuring our teams are safe and
showing solidarity with the populations affected. Our employees are actively
involved in supporting Ukrainian refugees in former Orange training centers that
have been turned into shelters, primarily in countries bordering Ukraine. The
Orange Foundation donated €1 million in aid. Additionally, in our operating
countries in Europe, calls to Ukraine are now free or cost 80% less than our
standard rates. As well as having immediate effects, the current conflict is a
reminder that we need to better protect our data and strengthen digital
sovereignty across Europe. That’s why Orange is involved in the Gaia-X initiative
and the Bleu project, which aims to provide a reliable cloud platform.
Christel Heydemann, what will be your guiding principles over the coming
months?
C.H.: First, I want to reach out and listen to the Group’s teams and shareholders
to ensure full transparency and confirm our strategy is effective. I’ll be making
the time to travel and meet people on the ground over the next few months.
Second, I will show how my own values dovetail with those of Orange in relation
to topics that are important to me, such as climate change mitigation and
diversity. During my career, I saw the positive impact proactive workplace
gender diversity policies can have. These are topics to which Orange has been
committed for several years now, and in which I will invest all my energy.
2021 Integrated Annual Report
10
Orange at a glance
€42.5 bn
140,000
in revenues
employees
26
countries
and a global presence with Orange
Business Services
Europe
Belgium, France, Luxembourg, Moldova,
Poland, Romania, Slovakia, Spain
Africa and the Middle East
Botswana, Burkina Faso, Cameroon,
Central African Republic, Côte d’Ivoire,
Democratic Republic of the Congo, Egypt,
Guinea, Guinea-Bissau, Jordan, Liberia,
Madagascar, Mali, Mauritius, Morocco,
Senegal, Sierra Leone, Tunisia
Orange
5 business
activities
Enhanced connectivity (retail and business customers)
IT services for businesses
Wholesale services
Cybersecurity
Financial services
271
million customers
224.3
million mobile customers
23.5
million broadband internet
customers, including
11.8 million FTTH customers
The Action Committee is chaired
by Ebba Kalondo and includes
the following members:
Jadwiga Czartoryska
Director of Polish foundations and
former Director of the Orange Poland
Foundation
Axel Dauchez
CEO of Make.org
Alan Fustec
CEO of Goodwill Management and
President of Agence Lucie
Nicolas Glady
Managing Director of Télécom Paris
Ebba Kalondo
Spokesperson in the Chairperson’s Office,
African Union Commission
Philippe Lemoine
Honorary Chairman of the Fondation
Internet Nouvelle Génération
Béatrice Mandine
Executive Vice-President Communication,
Brand and Engagement at Orange
Élizabeth Tchoungui
Executive Vice-President of CSR, Diversity
and Philanthropy at Orange
Hélène Valade
Environmental Development Director at LVMH
and President of L’Observatoire de la
Responsabilité Sociétale des Entreprises
(ORSE)
Our purpose
As a trusted
partner,
Orange gives
everyone
the keys to
a responsible
digital world.
“Supporting a leading global
digital stakeholder determined
to play a multi-faceted and
essential role in society is a
rewarding responsibility. The
aspiration of our Purpose is
central to our Action Committee
and the meticulous members
who advise and support
Orange.”
f Ebba Kalondo,
Chair of the Action Committee
11
— In 2019, we worked closely with our
employees and stakeholders to define our
purpose, which expresses who we are and
what our corporate vision means. Incorporated
into our company’s bylaws following a
near-unanimous vote at the 2020
Shareholders’ Meeting, it articulates why our
company exists and why this is meaningful
for the world at large. Bringing our purpose to
life is a long-term project we must constantly
revisit. To maximize Orange’s positive impact
on society over the next two years, we have
enlisted the help of seven external people,
whose areas of expertise include the
environment, digital trust, responsible
capitalism and assessments of the economic
impact of companies. They all epitomize what
true engagement means both in their
personal and professional lives.
In fulfilling its role, the Action Committee
critically and meticulously reviews our actions
as a leading digital company that is committed
to improving the lives of as many people as
possible. Supported by two of Orange’s
executive vice-presidents, the seven external
committee members have a broad scope to
organize their work as they see fit, make
recommendations and respond to requests
for advice from the Group’s governance
team. To ensure its commitments are met,
Orange has also set out objectives with
associated indicators that will be provided to
the Action Committee. At its first two
meetings, the committee asked to be briefed
on alternative ways of ensuring the company
would achieve net zero carbon emissions by
2040, as well as the steps taken to protect
children’s rights in an increasingly virtual
world.
2021 Integrated Annual Report
12
Trends
Increasing demand for connectivity
— Economic activity, remote working, as well as a desire to access information, public
services and education have contributed to the unprecedently high demand for connectivity.
The number of internet users around the world grew 17% between 2019 and 2021. However,
in the current global geopolitical, economic and social context, inequalities are widening
and society is expecting more and more of telecommunication services. Operators must
address major challenges such as guaranteeing privacy and data protection, developing
inclusive and accessible digital solutions, enabling freedom of expression, as well as
listening and responding to people who are wary of some aspects of technological progress.
In addition to inequalities in terms of coverage, differing needs and skills gaps mean that
many people still cannot access information or education.
3.4
billion people living in areas with coverage
don’t go online
Markets showing solid growth
in an increasingly competitive environment
— Growing demand for digital services and connectivity worldwide, particularly in the
healthcare and financial sectors, also means greater competition. Conflict and shortages of
materials also compel companies to rethink their products and supply chains. Tech-based
service providers—including large digital content platforms and telecommunications
operators—continue to deploy infrastructure, expand their range of affordable products and
services for retail customers, and develop new content and services. The proportion of
internet users in Africa stands at a third of the population, having risen 23% between 2019
and 2021. The number of developers is rising sharply across the continent, which is also
attracting more and more investment funds to create an ecosystem of top start-ups. Finally,
the concentration of key suppliers and the uncertainty of regulatory and fiscal developments
remain critical factors for the sector’s economy.
615
million
Orange
mobile phone users
in sub-Saharan Africa in 2025
Opportunities
for
Orange
f Deployment and expansion of
fixed and mobile network
coverage
f Access to education,
information, healthcare and
work
f Maintenance of economic
activity, social ties and public
services
f Development of inclusive and
accessible solutions
f Support for responsible use
f Increasing demand for
connectivity
f Growth in impactful digital
services (financial services,
healthcare, energy, etc.)
f Dynamic growth in Africa
and the Middle East
f Network mutualization
f Collaborative innovation
and development of
solutions and offers
×10
Opportunities
for
Orange
f Enhanced connectivity
f Cybersecurity
f Changing ways of working
and increasingly digital
needs
f Accelerated digital
transformations
among businesses
f Innovation in financial
services
f Improved customer
experience
f Agility and operational
efficiency
f Reduction and avoidance of
emissions through the use
of digital technology
f Low-carbon solutions and
innovations
f Development of the circular
economy
f Development of offers
to reduce emissions in
other industries
f Mobilization of stakeholders
(customers, employees,
investors, NGOs, public
authorities, regions,
suppliers, etc.)
13
Accelerated technological progress
— While certain technological solutions are being adopted at an even faster pace than
before, development has also sped up to meet growing connectivity demands. Artificial
intelligence, the Internet of Things, 5G, cloud infrastructure and quantum internet
developments offer businesses and individuals considerable opportunities to improve their
overall performance. Ethics must be taken into account when developing solutions to
ensure they are inclusive.
Companies are forging ahead with their digital transformations, with most of them
incorporating these developments into their strategy. Changing uses and ever-increasing
data traffic require increasingly powerful and secure networks.
A fivefold
increase
in the share of 5G mobile connections
worldwide between 2021 and 2025
Required reduction in greenhouse gas emissions
— Climate change is accelerating. Extreme weather events are becoming more frequent
and the knock-on effects are an increasing concern for people and organizations. Digital
technologies are said to account for 3.5% of greenhouse gas emissions worldwide.
Telecommunications operators are committed to providing innovative solutions that
accelerate the energy transition and help a wide range of businesses to reduce their carbon
footprint while making their products more eco-efficient. Other stakeholders within the
digital ecosystem need to match the sector’s sustained efforts—by measuring the impact of
their digital services on the environment, for instance.
40%
Digital technologies could deliver 40%
of the carbon emission reductions needed
to meet the Paris Agreement by 2030
Key figures: GSMA, 2021.
2021 Integrated Annual Report
14
Our strategy
Underpinned by on a firm social and environmental
commitment and structured around four ambitions, the
Engage 2025 strategic plan, launched in 2019, focuses on
growth and responsibility to enable the Group to expand while
contributing to a more inclusive and sustainable world.
Committed to digital inclusion and the environment
— Orange strives to ensure that everyone benefits from the digital revolution and is
committed to reducing inequalities exacerbated by ongoing geopolitical, economic and health
crises. The Group notably offers special tariffs to low-income households and designs devices
that meet the needs of both sustainability and inclusion. We also promote digital inclusion by
providing user support and encouraging skills development, including through the nine Orange
Digital Centers open in Africa and the Middle East and the programs run by the Orange
Foundation (see pages 47 and 79).
In the fight against climate change, Orange aims to achieve net zero carbon emissions by
2040, 10 years earlier than the 2050 objective set by the Global System for Mobile
Communications Association (GSMA), the industry organization representing
telecommunications operators. The Group has embarked on an unprecedented effort to
improve energy efficiency to curb its own emissions and those of its customers. The Group has
reduced its CO2 emissions by 12.1% since 2015 (on a comparable basis) and is targeting
a 30% reduction by end-2025 (see pages 62-63). Orange has also stepped up its use of the
circular economy and plans to source 50% of its electricity from renewable sources (see pages
64-67). In December 2021, the Group set up Orange Nature, an innovative €50 million carbon
fund to finance natural carbon sinks to offset some of our residual emissions (see page 81).
Reinventing our operator model
— Orange continues to expand its core business as an operator by developing more
open, higher-value infrastructure. We invest in enhancing connectivity across our footprint,
providing higher speeds and new related services (see pages 26 and 39). The Group continues
to expand very high-speed fixed and mobile network coverage and aims to offer fiber-to-the-
home (FTTH) packages to over 65 million homes in Europe by 2023 (see pages 30-31).Orange
also optimizes and enhances its infrastructure by developing FiberCos and TowerCos. Set up
in February 2021, our TowerCo TOTEM has already established a leadership position in the
passive mobile infrastructure market in Europe (see pages 39-41).
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15
Accelerating in growth areas
— Twenty years ago, Orange pioneered a strategic decision to extend operations to Africa
and the Middle East (see pages 46-47). Today, the Group is aiming to become the leading
digital operator in the region. In 2021, thanks to its mobile data activities, the deployment of 4G
and the success of Orange Money, the Group’s revenues grew by more than 10% (see pages
50-51). We are also pursuing our multi-service strategy centered around content, e-health and
energy, and broadening our portfolio of financial services across all our operating countries.
Orange Bank has also capitalized on the success of its cross-banking and telecom offerings
and is currently ranked among the top five neobanks in France (see pages 48-49). Through its
subsidiary Orange Business Services, the Group is accelerating the development of its IT
services to help BtoB customers with their digitalization and migration to the cloud (see pages
54-55). Orange Cyberdefense—the Group’s cybersecurity arm—also works with business
customers (see pages 56-57). The entity grew 14% between 2020 and 2021 (on a comparable
basis), strengthening Orange’s ambition of securing a leadership position in the European
cybersecurity market by 2023.
Placing data and AI at the heart of our innovation model
— By combining the best of digital and human, we use new technologies to offer a simple,
high-quality and responsible customer experience, both in stores and on digital channels.
Artificial intelligence (AI) and data enable us to harness virtual assistance, predictive analytics
and smart targeting solutions to offer increasingly personalized offers (see pages 46 and 77).
Through smoother pathways and better customer insight, the Group aims to have 9 out of 10
customers recommend Orange in all operating countries by 2025. At the end of 2021, this
figure stood at 8.8 out of 10.
Orange also uses AI and data to improve its networks and optimize the deployment of its
fiber network and new mobile sites (see pages 36-39). These technologies also facilitate
day-to-day network maintenance, helping to reduce costs and improve quality of service.
Furthermore, in 2021, Orange set up a Data and AI Ethics Council to build greater trust with its
customers, employees and stakeholders, in line with its Purpose.
Collectively building the company of tomorrow
— As a digital and caring employer, Orange is tackling the skills challenge to support its
international expansion and the growth of its B2B services and new technologies. To this end, it
is implementing an ambitious upskilling and reskilling program for all employees (see page 75).
We have also demonstrated our commitment to diversity and gender equality in the workplace in
recent years, which has resulted in an almost 36% female workforce (see page 76). To foster a
greater sense of belonging among its employees, Orange involves them ever more closely in its
development and prospects. In November 2021, 64,000 employees and former employees
across 37 countries bought shares under Together 2021, our largest employee share ownership
plan to date. Moreover, our growth ambition is underpinned by an operational efficiency
program, Scale Up.
2021 Integrated Annual Report
16
Our
business model
Rolling out digital
infrastructure
Connecting as many people
as possible
Developing new, trustworthy
services
Fiber
networks
Mutualized
solutions
(TowerCos
& FiberCos)
Mobile
networks
Individuals
Businesses
Operators
Financial
services
IT services
for
businesses
Cybersecurity
Our purpose
As a trusted partner,
Orange gives everyone the
keys to a responsible
digital world.
Orange
Assets
Value created
Value sharing
People
140,000 employees
8,000 working in research and innovation,
including 720 as researchers
2,500 cybersecurity experts
31.6% of women in management networks
Industrial assets
40,000 mobile towers in Europe and
450,000 km of submarine cables owned or
co-owned
Fiber: Europe’s leading provider in the
market with 56.5 m connectable homes
4G coverage reaching an average of
nearly 99% of the population in Orange’s
8 operating countries in Europe and
17 countries in Africa and the Middle East
5G rolled out in 6 European countries
32 cyber threat detection centers worldwide
Commercial assets
USD 20 bn: Orange’s brand value in 2021
(BrandZ ranking)
4,900 stores across the world
and 900,000 resellers in Africa and
the Middle East
44,500 employees in customer-facing roles
18% of sales through digital channels
in Europe
Financial assets
€35.4 bn in equity
7.38% of shareholder base made up of
employees and former employees
1.91x: satisfactory debt ratio
€50 m: the investment capacity of
the Orange Nature carbon fund
Suppliers and partners
36.3% of the Group’s electricity comes from
renewable sources
92.4% of suppliers committed to complying
with the Code of Conduct (ESG)
BuyIn, a joint venture between Orange and
Deutsche Telekom to optimize strategic and
sustainable procurement activities
* On a comparable basis
** Joint Alliance for CSR (JAC): An association of telecoms
operators that seeks to audit, assess and develop the
implementation of CSR principles.
A major employer
9,200 recruitments on unlimited contracts
in 2021
91% of employees say they are proud
to work at Orange
92% of employees completed at least one
training program in 2021
Providing an essential service
No.1 for mobile network quality in France
for the 11th year running (Arcep)
Leadership position in the European fiber
and convergence markets (with 11.8 m and
11.5 m customers respectively)
25.1 m Orange Money active customers
1.7 m Orange Bank customers in Europe
200 malicious websites shut down every day
Inclusive and open innovation
A portfolio of more than 9,000 patents
Awarded the GEEIS-AI label for inclusive
artificial intelligence
9 Orange 5G Labs in Europe
18 start-ups backed by Orange Ventures
Solid financial performance
EBITDAaL: €12.6 bn
Operating income: €2.5 bn
Organic cash flow from telecoms activities:
€2.4 bn
A reduced environmental impact
12.1% reduction in CO2 emissions between
2015 and 2021*
20.4%: collection rate of unwanted mobiles
in Europe
Progress towards digital equality
Almost 140,000 new beneficiaries of
programs run by the Orange Foundation
16 countries offering affordable smartphones
with internet access
9 Orange Digital Centers in Africa and
the Middle East
Responsible and ethical
working relationships
402 corrective action plans carried out after
CSR audits conducted under the JAC**
€17.6 m spent on goods and services from
companies in the sheltered employment
sector
2021 data
See the methodology note in the 2021 Universal Registration
Document for calculation methods and definitions.
17
2021
2020
Customers
Revenues
€42.5 bn
€42.3 bn
Suppliers and partners
External purchases and leases
€19.6 bn
€19.1 bn
Employees
Wages and employee benefits
€9.9 bn
€8.5 bn
Regions
Network investments
€5.0 bn
€4.7 bn
Public sector
Licenses and taxes
€3.8 bn
€3.7 bn
Shareholders
Dividends paid
€2.3 bn
€1.8 bn
Lenders and financial
investors
Finance costs
€1.1 bn
€1.4 bn
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021 Integrated Annual Report
18
Our business model
“As a trusted partner, Orange gives everyone the keys to a
responsible digital world.” Such is our purpose, which frames
everything we do and runs through our entire business model,
enabling us to continuously create value we can share.
Rolling out digital infrastructure
— Orange is one of the world’s leading telecommunications operators. We design, deploy
and operate the infrastructure that’s essential for today’s digital world. Our priority is to develop
high-performance, secure, intelligent networks that are also energy efficient to ensure our
industrial strategy is sustainable, in line with our climate commitments.
The fixed and mobile access networks we operate reach individuals in 26 countries in
Europe, Africa and the Middle East, and businesses in almost 220 countries and regions. We
own a total of 40,000 mobile towers in Europe and own or co-own 450,000 km of submarine
cables. Our customers—including people living in remote areas—can access very high-speed
broadband using satellite technology.
Committed to continuing to deploy fiber, Orange teamed up with long-term investors to
create two FiberCos in Europe. In 2021, the Group also launched TOTEM, its European
TowerCo, providing mutualized solutions for operators to facilitate passive mobile infrastructure
sharing, derive higher value from mobile towers and optimize the way in which they are
managed.
Connecting as many people as possible
— The trends accelerated by the pandemic—the growth in the number of internet users,
progress made in terms of enhancing regional coverage, digital transformations within
companies and widespread use of online services—signal a growing need for reliable, inclusive
and secure connectivity everywhere.
Our response involves continuing to roll out fiber, 4G and 5G, greatly increasing the
capacity of our infrastructure. Our infrastructure provides enhanced connectivity for our entire
customer base, comprising retail, business and wholesale customers (operators in France and
abroad, content and internet service providers, etc.).
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19
Developing new, trustworthy services
— Our networks are the foundation for developing innovative services relating to finance,
business IT support, cybersecurity, content, e-health, remote surveillance, energy, and more.
The trust people place in our brand and a strong regional network help Orange Bank to
develop in-house banking services that are mobile-native and work in synergy with our
broader telecom activities. Over 25 million active Orange Money customers in Africa and
the Middle East use the service to complete financial transactions quickly and easily on the
move.
Through Orange Business Services, our unique expertise as both a network operator and
digital services integrator means we combine the full range of skills required to support
businesses all along the digital value chain, with on-demand networks, multi-cloud services,
data analysis, artificial intelligence and smart mobility services. We are constantly developing
innovative services to help businesses leverage new uses and face major changes in their
sectors. Our solutions can also help them reduce their environmental footprint.
What’s more, through Orange Cyberdefense, we provide cybersecurity services across all
stages of the threat life cycle.
Sharing the value we create
— In line with our purpose and Engage 2025 strategic plan, our aim is to create value for
our shareholders, employees, customers and, ultimately, society as a whole. The strong level
of engagement among our employees is our biggest asset when it comes to our role as an
essential operator. Orange invests in skills development, supports the introduction of new
ways of working and promotes gender diversity in all areas of the business.
In 2021, Orange continued to invest in upgrading its networks to bring more and more
customers the best possible connectivity. Furthermore, the Group complies with exacting
responsible procurement criteria and fosters entrepreneurship in all its operating regions. As
a network operator and digital services integrator, we ensure digital technology plays a key
part in transforming businesses. Our financial solidity enables us to maintain the trust of our
lenders, investors and shareholders, reaching nearly 7.5% employee share ownership
through our Together 2021 internal shareholding plan.
We firmly believe that digital technology can facilitate inclusion, which is why we support
a growing number of people through nine Orange Digital Centers, dedicated learning hubs to
develop people’s digital skills. We have pledged to achieve net zero carbon emissions by
2040—10 years earlier than the objectives set by the GSMA global telecoms industry body—
by making our networks, buildings and transportation systems more energy efficient, making
greater use of electricity from renewable sources and engaging with the circular economy.
2021 Integrated Annual Report
20
Key performance
indicators
Number of customers
Revenues
271 m
2021
2020
2019
€42.5 bn
271 m
259 m
253 m
2021
2020
2019
€42.5 bn
€42.3 bn
€42.2 bn
Operating income
€2.5 bn
2021
2020
2019
Cash flow from telecoms activities
€2.4 bn
€2.5 bn
€5.5 bn
€5.9 bn
2021
2020
2019
Number of homes connectable to
FTTH (Fiber to the home)
Number of 4G customers
in Africa and the Middle East
56.5 m
44.4 m
2021
2020
2019
Orange
56.5 m
47.2 m
38.2 m
2021
2020
2019
* On a comparable basis
** On a historical basis.
*** See page 114 for definition.
€2.4 bn
€2.5 bn
€2.3 bn
44.4 m
33.0 m
23.8 m
Number of Orange Bank customers
in Europe
Number of active
Orange Money customers
1.7 m
2021
2020
2019
25.1 m
1.7 m
1.2 m
0.5 m
2021
2020
2019
21
25.1 m
21.9 m
18.2 m
Share of IT services in
the Orange Business Services revenue mix
Scope 1 and 2 CO2 emissions
(in metric megatons)
41.2%
2021
2020
2019
1.30 Mt
41.2%
39.5%
37.2%
2021
2020
2019
1.30 Mt
1.32 Mt
1.30 Mt
*
**
Percentage of electricity from
renewable sources
Collection rate for unwanted mobile phones
in Europe
36.3%
2021
2020
2019
20.4%
36.3%
31.3%
26%
*
**
2021
2020
2019
20.4%
10.2%
11.7%
Percentage of management network***
roles held by women (Group)
Orange brand value (BrandZ Top 100 Most
Valuable Global Brands)
31.6%
2021
2020
2019
USD 20.2 bn
31.6%
31.1%
31.1%
2021
2020
2019
USD 20.2 bn
USD 19.4 bn
USD 20.7 bn
2021 Integrated Annual Report
22
Our contribution to
the UN 2030 Agenda
for Sustainable Development
Build resilient infrastructure, promote inclusive and sustainable
industrialization and foster innovation
We develop telecommunications networks and invest in research to
provide regions, businesses, operators and individuals with connectivity
(fixed and mobile networks) and innovative services (IT services,
cybersecurity and mobile financial services).
Reduce inequality within and among countries
We give as many people as possible access to technology and knowledge
and therefore support the integration and empowerment of all members of
society. We constantly work to reduce digital inequality and strive to
promote diversity and equal opportunities within our company.
Ensure sustainable consumption and production patterns
We are introducing more circular economy thinking into our production
processes and industries by applying an eco-design approach to our
products, devices and services, prolonging their lifespan, improving
end-of-life management and reducing our environmental impact (by
providing collection and recycling solutions).
Take urgent action to combat climate change and its impacts
We are working to combat climate breakdown by improving the energy
efficiency of our infrastructure, using more renewable energy and
developing solutions to bring about the low-carbon transition. We strive
to achieve net zero carbon emissions by 2040.
Promote peaceful and inclusive societies
We pledge to defend fundamental rights and freedoms and protect privacy.
We have adopted an ethical approach through our responsible purchasing
policy and efforts to combat corruption.
Strengthen the means of implementation and
revitalize the global partnership for sustainable development
We support the social and economic development of regions and form
partnerships with institutions, development agencies, NGOs, social
entrepreneurs, innovative SMEs, etc. to fulfil the SDGs, including for
essential services (mobile money, education, agriculture, health, etc.).
Orange
23
In line with our Purpose and strategy, we have identified
the six UN Sustainable Development Goals (SDGs) where
we can make the greatest contribution, along with
five complementary SDGs.
f
The 4G network, on average, covers nearly 99% of the population in eight European countries
where Orange operates
f 17 countries in Africa and the Middle East have commercial 4G coverage
f Operator with the most patents filed in Europe
f 25.1 million active Orange Money customers
f 56.5 million homes connectable to fiber (FTTH)
f
16 of Orange’s operating countries in Africa and the Middle East offer affordable smartphones
with internet access
f Member of the Valuable 500 initiative and the ILO Global Business and Disability Network (GBDN)
f Employees with a disability make up 6.5% of Orange SA
f Launch of the Hello Women program to promote a gender-balanced workplace
f Signature of a 6th intergenerational agreement, covering the period from 2022 to 2024
f Nearly 140,000 new beneficiaries of programs run by the Orange Foundation in 2021
f
9 Orange Digital Centers in Africa and the Middle East—110,000 beneficiaries by the end of 2021
f Goal of ensuring all products sold under the Orange brand will be developed in line with an
eco-design approach by 2025
f Orange Sustainable and Circular Ambition for Recertification (OSCAR) program to increase
the use of refurbished IT and network equipment
f Campaigns to share eco-friendly tips
f
20.4%: the percentage of mobiles collected as a proportion of the number sold in Europe
f
36.3% of the Group’s electricity comes from renewable sources, with some sites benefiting
from solar energy
The Green ITN program to reduce energy consumption across our networks and IT systems
f
f Development of a catalog of eco-friendly solutions for business customers
f
f A 12.1% decrease in CO2 emissions (across scopes 1 and 2) since 2015
Use of digital tools to protect biodiversity
f Member of the Global Network Initiative*
f Code of Ethics
f
International Charter for Inclusive Artificial Intelligence launched with the Arborus endowment fund;
holder of the GEEIS-AI label
f 200 malicious websites shut down every day by Orange Cyberdefense
f 82,000 UN-Orange anti-corruption certificates issued to employees
f 92.4% of suppliers committed to complying with the Code of Conduct (ESG)
f
f
f
f
402 corrective action plans carried out after CSR audits conducted under the JAC
Partnership agreement with the Global Fund to Fight AIDS, Tuberculosis and Malaria in
four African countries
90 research contracts with leading university laboratories worldwide to advance knowledge
and build bridges between science and industry
€350 m allocated to Orange Ventures, with €30 m earmarked for start-ups positively
impacting the environment, inclusion or care through the Orange Ventures Impact fund
* An NGO that seeks to safeguard freedom of expression and
personal privacy against government restrictions.
2021 Integrated Annual Report
24
The meaning behind
what we do
Orange is helping to build a society where technology drives
human development. We firmly believe that today’s digital world
needs to be more inclusive and sustainable.
— Incorporated into our bylaws in 2020, our Purpose describes the role we want to play
in society, both as a business, in terms of how we create value for our entire ecosystem,
and as a key digital partner, and how our operations and investments can have a positive
environmental and social impact. The enormity of the social, economic, technological and
environmental challenges facing the world today compels us to make the right choices.
Being a trusted partner in a responsible digital world is the cornerstone of our long-term
growth strategy. It’s why we exist and will continue to exist.
Our Purpose is built around four commitments, two of which are principles that have
guided us for many years already, while the other two are central to our Engage 2025
strategic plan. We pledge to ensure our operations contribute to an inclusive, ethical and
sustainable economy that creates value for all our stakeholders, notably the 140,000 employees
within our Group. In a technologically driven world, we seek to project optimism and inspire
trust. We therefore pledge to use digital technology to build a more open, fairer and safer
society where individual freedoms and rights are protected and help people use technology
responsibly. We combat inequality with respect to access, equipment, uses and
understanding of digital technology, which we believe to be essential to progress and equal
opportunities. Furthermore, we strongly believe that digital technology can offer solutions to
combat the climate breakdown. We have pledged to reduce our environmental footprint in an
ambitious bid to achieve net zero carbon emissions by 2040, and help our customers reduce
their own greenhouse gas emissions. These commitments guide us in what we do and tie in
with the 2030 Agenda for Sustainable Development adopted by the United Nations,
particularly the six Sustainable Development Goals (SDGs) where we can make the greatest
contribution.
Orange
25
As a trusted partner,
Orange gives everyone the keys to a responsible
digital world
Purpose
Commitment to
developing a
responsible economy
Commitment to
building a society
based on trust
Commitment
to digital equality
Commitment
to the
environment
Four
commitments
Orange’s major contribution
to six of the 17 Sustainable
Development Goals
Principles of action
Engage 2025 priorities
q Governance
q Responsible
finance
q Ethical business
conduct
q Shared value
q Responsible
purchasing
q Responsible
employer
q Respect of
fundamental
freedoms
q Impact innovation
q Privacy and data
protection
q Customer relations
q Responsible uses
q Connectivity for all
q Inclusive offers and
affordable
smartphones
q Essential services
q Accessibility for all
q Digital solidarity
Net zero carbon
q Energy efficiency
q Electricity from
renewable sources
q Circular economy
First
milestone
Main
drivers of
change
Our mission is to ensure that digital services are well thought-out, made available and
used in a more caring, inclusive and sustainable way in all areas of our business. Through the
engagement and expertise of the Group’s teams, Orange is intelligent, optimistic and resolute
in its deployment of reliable, innovative infrastructure and services everywhere and for
everyone.
2021 Integrated Annual Report
26
27
Infrastructure
f Key performance indicators
f Fiber, the crowning glory of our trailblazing investment
approach
f Submarine cables linking regions
f Digital sovereignty, a growing priority for France and
the rest of Europe
f Our mobile networks are undergoing a revolution
f What are TowerCos?
Orange
2021 Integrated Annual Report
28
Infrastructure
Key performance indicators
Orange has been heavily investing in new-generation digital
infrastructure for many years. Ground-breaking deployments
enable us to fulfill our role as an essential operator
committed to providing connectivity to as many people as
possible and accelerating regional development.
Number of households connectable
to FTTH
Objective: 69.0 m in 2023
56.5 m in 2021
47.2 m in 2020
248,000 km
of fiber-optic submarine cables
installed by Orange Marine in oceans
around the world
Nearly
99%
6
of the population in our 8 operating
countries in Europe covered by
the 4G network
European countries covered by
our 5G networks: France, Luxembourg,
Poland, Romania, Slovakia and Spain
Orange
29
Mobile customers
224.3 m
214.1 m in 2020
60.4%
Africa and the Middle East
23.8%
Europe
15.8%
France
(incl. business customers)
Broadband internet customers
23.5 m
21.7 m in 2020
53.3%
France
(incl. business customers)
38%
Europe
8.7%
Africa and the Middle East
No.1
4.5 m
for mobile network quality in France
for the 11th year running (Arcep)
fiber-optic lines deployed by
Orange Concessions, our French
FiberCo, by 2025
TOTEM, Orange’s European TowerCo*
18,500 sites in France
7,900 sites in Spain
Data at 31.12.2021
* Data at 01.11.2021
2021 Integrated Annual Report
30
Infrastructure
Fiber, the crowning glory
of our trailblazing investment
approach
Digital activities are growing rapidly, which is why reliable
connectivity is vital to daily life, the economy and society as
a whole. Orange has been investing in bringing fiber-optic
internet to homes and businesses for almost 10 years. This
large-scale industrial project involves deploying fiber-optic
equipment that provides much higher speeds than ADSL—
up to 2 Gb/s in France and 10 Gb/s in Spain. With 11.8 million
FTTH customers (22.1% more than in 2020) and 56.5 million
households connectable to FTTH (19.7% more than in 2020),
Orange is a leading provider in the European fiber market.
Fiber, a powerful customer acquisition tool
— A total of 56.5 million households in Europe are now connectable to FTTH to the home
(FTTH) and we aim to increase this figure to 69 million by 2023.
Having deployed 66% of the country’s FTTH lines, we’re No.1 for fiber in France. As a
result, France has the largest fiber footprint in Europe, where our fiber deployment continued
its record-breaking pace in 2021, with 5.9 million new sockets. Having gained 1.4 million
new FTTH customers in 2021, we reached 6 million fiber customers in France in early 2022.
Over half of our new fiber customers were completely new customers, proving that fiber
boosts our growth.
In Poland in 2021, the Group set up a FiberCo—a 50:50 joint venture with Dutch pension
investment company APG—which will enable Orange Poland to accelerate fiber deployment
across the country by sharing investment costs. This FiberCo will deploy an additional
1.7 million FTTH connections in the next five years, primarily in areas with limited or no
access to very high-speed broadband, bringing the total number up to 2.4 million.
Orange
Orange Concessions,
operating rural
fiber networks
Ensuring all parts of France can
access very high-speed
broadband involves working with
public and economic
stakeholders. Orange joined
forces with La Banque des
Territoires (Caisse des Dépôts),
CNP Assurances and EDF Invest
to create Orange Concessions, a
€2.675 billion joint venture in
which the Group has a 50% stake.
Launched in 2021, this FiberCo
supports local authorities in their
regional digital development,
drawing on our industrial
expertise to orchestrate fiber
network design, construction and
operation. Orange Concessions
brings together 24 Public
Initiative Networks (PINs)—run by
local authorities to deploy fiber in
rural or sparsely populated
areas—with 4.5 million
connections. It is therefore the
leading infrastructure operator in
rural France.
Copper
decommissioning,
a two-step process
Our legacy copper network—
used for telephony and ADSL
services for over 50 years—will be
phased out, marking the end of
an era. This two-step process
involves discontinuing our
copper-based services in areas
with fiber, then gradually
dismantling the network by 2030.
Our existing copper network
customers will, once their area is
connected to fiber, have to sign
up to a fiber package or find an
alternative solution (e.g. 4G fixed/
satellite broadband). We are
currently conducting trial
migrations in a number of towns.
31
70%
of France is covered by fiber connectivity,
provided primarily by Orange
11.8 m
Orange fiber customers in Europe
In Spain, almost 800,000 homes have been connected to fiber since January 2021,
including a significant number in cities with fewer than 25,000 people. Having made nearly
16 million homes fiber ready, Orange is in second place in the Spanish market. In 2021, we
also launched 10 Gb/s fiber broadband for retail customers.
A key contributor to regional connectivity
— Closing the digital divide is central to our commitment to digital equality, which is why
increasing digital coverage across our operating regions is a priority for us. We must act in
an inclusive and responsible manner by deploying the networks of the future while
supporting households that are disconnected from digital services. Our efforts to expand
our fiber network reflect our commitment to being a key partner of local authorities
throughout their digital development projects. The Group supports the French government’s
“France THD” plan, which aims to ensure all parts of the country can access superfast
broadband (offering speeds of at least 30 Mb/s) by 2022. This deployment will enhance
access to digital services and modernize public services, including in rural and mountainous
areas.
2021 Integrated Annual Report
32
Infrastructure
Submarine cables
linking regions
Submarine telecommunications infrastructure is vital to the
global economy. Today, 1.3 million km of submarine cables
carry 99% of the world’s internet traffic, making transoceanic
communication possible in an instant. The world’s great powers
and tech giants are vying for ascendancy, as those who control
these cables also control the data they carry. These cables are
therefore key to French and European economic and information
sovereignty. The Group’s subsidiary Orange Marine—one of
the world’s leading experts in this strategic sector—helps
guarantee full and open internet access.
A key contributor to the global market
— Orange Marine, a wholly owned subsidiary of the
Group, specializes in laying and repairing submarine
cables for all types of customers around the world. It has
been connecting continents for over 100 years by
deploying a high-quality global telecommunications
network and, in more recent years, shifting from traditional
copper cables to fiber optics. Orange Marine has six cable
ships, a vessel (the “Urbano Monti”) that conducts
submarine cable route surveys and four marine bases (the
Atlantic, the Mediterranean, Catania in Italy and South
Africa). It also has a subsidiary in Fuveau, south-east
France, which designs, manufactures and operates
submarine equipment used when carrying out work on
cables. Its ships have installed over 278,000 km of cables
since the 19th century and repaired more than
7
ships under French, Italian
and Mauritian flags
Orange
33
670 submarine connections up to 6,000 m below the
surface of the water. Our expertise—which ranges from
project engineering to installation and maintenance of
submarine cables—is recognized around the world. This
enables us to play a significant strategic role in the
deployment of faster, new-generation cables around the
world.
In 2021, Orange Marine also: laid a new cable across
the English Channel, several cables (including a
deep-sea cable) in the Pacific, the first fiber-optic
transpacific cable between Japan and Canada, the first
cable between the island of Saint Helena and the rest of
the world, and a section of the PEACE cable between
France and Pakistan; and helped install three cables in
Africa. Orange Marine also repaired over 50 cables,
including in the Atlantic Ocean, the Mediterranean Sea,
the Indian Ocean, the Pacific Ocean and Asia.
A pivotal year
— Orange landed a new transatlantic submarine
cable called “Amitié” in 2021. This 6,800 km long,
new-generation cable will link the US, France and the UK.
We are responsible for operating and carrying out
maintenance at the cable landing station in France.
Orange will benefit from two fiber pairs, each with a
capacity of up to 23 Tb/s. Following on from the Dunant
cable commissioned in 2020, Amitié is another
opportunity to showcase our expertise and further
enhance our leadership position in the transatlantic
market. The demand for greater bandwidth is growing,
with internet traffic across the Atlantic doubling every
two years on average. These cables allow us to offer our
retail, business and wholesale customers a range of
increasingly efficient and resilient France-US connectivity
solutions. Amitié places France at the heart of the
European hub, linking different international networks to
America, Africa and Asia.
The environment
Making our fleet
more eco-friendly
Having obtained the Green Marine
Europe label and signed the
Sustainable Actions for Innovative
and Low-impact Shipping (SAILS)
charter, Orange Marine has
undertaken 10 key eco-friendly
initiatives to strengthen its position
as a sustainable shipowner while
reducing its fleet’s environmental
footprint. For instance, it is building
a new cable ship—the “Sophie
Germain”—which will replace the
oldest ship in the fleet and reduce
CO2 emissions by 20% and nitrogen
oxide emissions by 80%.
278,000
km of cables installed,
including 248,000 km of
fiber-optic cables
2021 Integrated Annual Report
34
Infrastructure
Digital sovereignty,
a growing priority for France
and the rest of Europe
All over the world, increasingly frequent cyberattacks and
extraterritorial effects of other nations’ legislation pose
a threat to the integrity of citizen data and European
business operations. Even though cybersecurity solutions
can provide effective protection, mass data fragmentation—
when data is scattered across different cloud environments
subject to different legal constraints—remains a significant
obstacle to building digital trust. The rising geopolitical
tension has compelled Europe to have its own sovereign
data hosting infrastructure on European soil. As a leading
European company, Orange has a responsibility to help
the continent achieve digital independence.
65%
of executives and directors in
France view digital
sovereignty as a top priority
Source: HPE study
Need for sovereign infrastructure
— EU Member States adopted the General Data
Protection Regulation (GDPR) in 2016. The next step is to
design suitable technological infrastructure, including
cloud infrastructure physically located in Europe. The
French government is taking a similar approach with its
“cloud at the center” policy, which sets out high national
standards for data management. This policy is focused on
the data sovereignty needs of the government, public
administrations and organizations with critical
infrastructure subject to special confidentiality, security
and resilience requirements. It primarily affects companies
in the manufacturing and financial sectors, critical network
operators and essential service operators.
Orange
35
Gaia-X
Towards a European
data ecosystem
Orange is a founding member of
Gaia-X, a European initiative to create
cloud infrastructure connecting
European data producers and
consumers in an environment built on
trust. This project requires common
standards for cloud service providers
and standardized hosting practices.
Gaia-X aims to boost European
competitiveness regarding data
processing and enhance the visibility
and consistency of existing cloud
solutions in Europe.
2021 Integrated Annual Report
BLEU, a reliable cloud platform
like no other
— As a key partner to private- and public-sector
customers looking to implement multi-cloud strategies,
Orange provides cybersecurity and digital sovereignty
assurances for critical data. In May 2021, the Group
teamed up with Capgemini to create, in partnership with
Microsoft, a cloud services platform to meet France’s
data sovereignty needs. BLEU—the largest project of its
kind—is the first cloud platform to quickly accommodate
an increased demand for computing resources (i.e., a
hyperscale cloud) under French and European
jurisdictions.
In concrete terms, BLEU will ensure critical network
operators, essential service operators, the French
government, the public service, hospitals and regional
authorities can access Microsoft 365 collaboration and
productivity tools, as well as all Microsoft Azure services.
The platform will provide assurances in terms of
transferring data and controlling cloud applications
exclusively from isolated infrastructure, based on data
centers located in France. These data centers are strictly
separate from Microsoft’s data centers, guaranteeing full
operational autonomy. BLEU also provides immunity
from all extraterritorial legislation and economic
independence. Ensuring the services provided by the
platform comply with the criteria of the “SecNumCloud”
certification delivered by France’s national agency for
IT security (ANSSI) is a stepping stone to obtaining the
“Cloud de Confiance” certification. Ultimately, BLEU will
join the European Gaia-X initiative to help create
sovereign solutions at a European level.
36
Infrastructure
Our mobile networks
are undergoing a revolution
Offering speeds three to four times faster than 4G, the fifth
generation of mobile networks promises to revolutionize uses
by keeping pace with growing consumer and corporate
connectivity demands. While some Orange teams are
responsible for gradually deploying this new network and
continuing to improve 4G coverage to reach greater numbers of
people across our geographies, others are working to ensure
everyone understands the new use cases made possible by the
5G revolution.
Open RAN
Offering enhanced
connectivity
Orange launched the first Open RAN
integration center in France in 2021.
Open RAN—a type of network
architecture that allows intelligent
radio access networks to be built
using open interface specifications—
is critical to 5G infrastructure
development in rural areas and
certain buildings.
5G: targeted, responsible
development
— Orange started by deploying 5G networks in places
where they would be most beneficial to its customers,
including areas that are busy and built-up (such as towns,
cities and economic hubs), have the greatest connectivity
needs and are therefore at risk of network saturation. The
fact that our 4G and 5G mobile networks work in tandem
means we can provide high levels of connectivity
everywhere we operate. Having won the largest portfolio
of 3.5 GHz frequencies in France in 2020, Orange has its
sights set on speeds that enhance the user experience on
the move. We are deploying 5G masts at existing 4G sites,
minimizing the land area and installation works required.
For mobile users to take advantage of these 5G
networks, they need the right devices. This is why 60% of
the smartphones in Orange’s catalog are 5G compatible
and we hope to bring this figure up to 80% by the end of
2022. Orange operates 5G networks in six European
countries—France, Luxembourg, Poland, Romania,
Slovakia and Spain. In Tunisia and Senegal, Orange has
Orange
37
Growing 4G coverage
Orange continues to strengthen network coverage across all its geographies,
particularly in rural areas. Our 4G coverage reaches nearly 99% of the population in
our eight operating countries in Europe and we provide 4G coverage in 17 countries
in Africa and the Middle East. Our efforts were recognized once again when Arcep
ranked us No. 1 for mobile network quality in France for the 11th year running. We now
have 44.4 million 4G customers in Africa and the Middle East, a 34.4% increase on the
previous year. To optimize 4G and 5G network management and development, and
lower our carbon footprint, we plan on phasing out our 2G and 3G networks in Europe
by 2030.
presented 5G demonstrations to the general public and
key economic players.
Technology designed with
energy efficiency in mind
— With smart antennas that transmit signals only
when necessary, 5G consumes less energy than other
mobile networks. The per-gigabyte energy efficiency of
5G networks in 2025 will be up to 10 times greater than
their 4G counterparts in 2019.
The new use cases enabled by 5G, which include
shortening travel times by relaying live traffic information
and extend to many other smart city applications, will
also reduce energy consumption. What’s more, 5G
infrastructure will benefit from decentralized renewable
energy systems by balancing supply and demand in real
time and improving remote maintenance at
manufacturing facilities.
6
European countries—France,
Luxembourg, Poland,
Romania, Slovakia
and Spain—are covered by
Orange’s 5G networks
2021 Integrated Annual Report
38
Infrastructure
Impact on Industry 4.0
— Manufacturers stand to benefit a great deal from
this 5G revolution, as it will enable them to monitor
production to a very high degree of accuracy, operate
equipment remotely with minimal latency, manage
resources and incidents using a network of sensors,
perform predictive maintenance, plan call-outs in an
optimized, secure way using augmented reality, etc. In
order to develop these new uses, Orange has teamed up
with Schneider Electric to run industrial 5G trials at a
“showcase factory”. For instance, as part of tests on the
use of augmented reality technology for maintenance
Filming a piece of equipment
using a 5G-enabled device
provides immediate access
to information on its status
and upcoming maintenance
schedule.
purposes, operators simply film a piece of equipment
using a 5G-enabled device to access information on its
status and upcoming maintenance schedule. This
reduces equipment downtime, speeds up maintenance
operations and minimizes the risk of human error.
Additionally, Orange is working with ArcelorMittal
France and Ericsson on 5G Steel, the largest industrial 5G
network in France, which will enable the steel group’s
plants to deploy use cases requiring high-speed mobile
connectivity.
Roaming
Greater use
Looking at our wholesale
performance, we protected most of
the value of roaming in 2021 by
negotiating multi-year agreements
with partner operators, despite the
low rates of international travel during
the pandemic. As data consumption
rose and international travel began to
pick up in 2021, so did our revenues.
To support this recovery, our
subsidiaries launched special offers
to drive greater use of roaming
services.
Orange
A competitive edge in
the business world
— All areas of the economy could benefit from 5G, as
it will offer businesses faster speeds and shorter reaction
times, enabling them to achieve unprecedented levels of
quality and operational efficiency, offshore certain
activities and manage customer relations remotely, while
greatly improving productivity.
Not only does it offer higher speeds and lower latency,
5G is a disruptive innovation owing to its network
distribution capabilities. Network slicing allows a single
physical network to be split into multiple virtual networks,
prioritizing mission-critical applications and providing
different levels of quality and security. Network slicing
requires a standalone 5G core, which does not rely on 4G
infrastructure. Orange will be launching standalone 5G
solutions in its operating countries in Europe in 2022.
Orange Business Services already provides solutions to
customers on request.
Infrastructure sharing through
TOTEM
— In 2021, Orange launched TOTEM, its European
TowerCo (see pages 40-41). TOTEM offers operators
passive mobile infrastructure sharing services and
tailored connectivity solutions. The TowerCo also sells
solutions to improve connectivity and provide
differentiation in crowded, enclosed environments such
as stadiums, trains and offices. On 1 November 2021,
TOTEM managed 18,500 sites in France and 7,900 in
Spain. We are looking into extending TOTEM’s scope to
include other European countries and claim a leadership
position in the European TowerCo market.
39
72%
Nucideles
of companies say they expect
their operator to provide
5G support to test and develop
solutions in advance
Source: Orange study conducted with
GlobalWebIndex (2021)
Orange 5G Lab
Bringing future use cases
to life
The Orange 5G Lab initiative enables
the public and private sector to seize
all opportunities presented by 5G
networks. Our nine Orange 5G Labs in
Europe have given over 70 companies
of all sizes and sectors—including
retail gaming start-up Sporty Peppers
and telemedicine app designer
Bioserenity—a taster of how 5G could
impact their products and services.
Event use cases, such as immersive
fan experiences, are also being tested
as part of the initiative.
2021 Integrated Annual Report
40
40
Analysis
What are TowerCos?
Through TOTEM, our fully operational European TowerCo,
we aim to derive higher value from our passive mobile
infrastructure assets and benefit from new growth opportunities.
What exactly is a “TowerCo”?
Definition of a TowerCo
The word “Tower” refers to the structures that support mobile network antennas and include
masts and rooftop installations. A Tower Company or TowerCo is an entity responsible for
managing “passive” (non-electronic) infrastructure assets, which exclude antennas. Today,
TowerCos hold a significant proportion of passive mobile infrastructure assets in Europe. They
lease space on their masts and rooftop installations to different operators on a long-term
basis. They can also build new infrastructure when required.
Benefits of infrastructure sharing
Infrastructure sharing improves operational performance and generates additional revenue,
enabling owners to maximize the value of their assets. Expenses such as electricity and
maintenance are split among users. Furthermore, infrastructure sharing helps optimize
network coverage and reduce the digital divide in areas with space constraints (i.e., where
new infrastructure cannot be built). TowerCos can help operators take a differentiated
approach by building exclusive sites on request. Operators need to decide whether it makes
more sense to share infrastructure or adopt a differentiated approach depending on the
circumstances. Infrastructure sharing also benefits the environment, as less new infrastructure
needs to be built if multiple operators use the same mast.
New networks driving demand for TowerCo solutions
Several operators in Europe already employ shared infrastructure models. Infrastructure
sharing is also a well-established practice in the United States, providing a viable solution for
quick coverage expansion in such a large country. With the arrival of new IoT (Internet of
Things) and 5G networks, a significant increase in the number of antennas is expected and, in
turn, the demand for TowerCo solutions.
Orange
Orange
41
TOTEM’s passive
mobile infrastructure portfolio
includes
over
26,000
sites
in France and Spain
2021 Integrated Annual Report
42
43
Growth areas
f Key performance indicators
f Africa and the Middle East: double-digit growth
f Orange Bank goes from strength to strength
f Orange Money, providing access to mobile financial services
f Gaining a stronger foothold in Europe
f Guiding businesses through their own digital transformation
f Orange Cyberdefense, a leading provider of cybersecurity
services in Europe
Orange
2021 Integrated Annual Report
44
Growth areas
Key performance indicators
Our networks are the foundation for developing innovative and
responsible digital services relating to finance, business IT
support, cybersecurity, content, e-health and energy. Our
multi-service strategy is paying off in Africa and the Middle East,
as well as Europe.
Strong growth in Africa and the Middle East
Retail services
Revenues generated
in Africa and the Middle East
15%
10 %
5%
0 %
8.6%
6.2%
7.8%
5.2%
12.8%
10.6%
2019
2020
2021
€6.4 bn
in revenues generated across
Africa & the Middle East, up 10.6%
on 2020 (on a comparable basis)
Orange Money
25.1 m
active customers,
up 14.6% on 2020
Orange
45
Orange Bank
Solid growth across IT & IS services
1.7 m customers
in Europe
0.7 m customers
in Africa
Cybersecurity: 13.8%
Cloud: 9.3%
Digital & data: 7.4%
Customer experience
Percentage of customer issues resolved
during the first contact in Europe
Percentage of sales in Europe
generated via digital channels
Objective: 85% in 2025
79% in 2021
77% in 2020
Objective: 30% in 2023
18% in 2021
17% in 2020
Proportion of customers
who would recommend Orange
Percentage of remote customer
interactions handled via digital channels
in Europe
Objective: 9/10 in 2025
8.8/10 in 2021
8.8/10 in 2020
Objective: 80% in 2023
70% in 2021
62% in 2020
Data at 31.12.2021
2021 Integrated Annual Report
46
Growth areas
Africa and the Middle East:
double-digit growth
Orange aims to become the benchmark multi-service operator
in Africa and the Middle East by 2025. The Group’s strategy in
this region, where it has been present for over 20 years, involves
extending network coverage, building a multi-service digital
ecosystem, helping people acquire new digital skills and
enhancing BtoB services. All of which are drivers of a nearly
11% rise in 2021 revenue, meaning the region was the largest
contributor to the Group’s growth.
Customer relations
Connectivity
Digitalization and
automation
Digitalization has resulted in a
50% increase in the number of people
using the My Orange app. Users can
seamlessly manage their mobile and
financial services, access content,
monitor their consumption and
manage their options and devices.
Furthermore, Orange has deployed
chatbots in 11 countries. These
conversational AI robots answer
customer queries around the clock.
We are looking into using voicebots—
voice-user interfaces that interpret
spoken requests and respond to
them—to simplify our interactions
with customers.
— Orange invests heavily in deploying networks in
Africa and the Middle East. In 2021, we invested
€135 million in expanding our fiber network and delivered
793,000 new sockets. We have 2 million landline
customers across the region. Growth remained robust
across very high-speed mobile broadband in 2021, with
the number of 4G customers rising 34.4% year-on-year to
reach over 44.4 million. Our investments in infrastructure—
including as part of the All 4G project in Mali—aim to
reinforce this connectivity. What’s more, we acquired 5G
frequencies in Botswana and launched pilot 5G projects in
Senegal, Mali and Tunisia.
BtoB, a fast-moving market
— Orange is developing a range of services to support
healthcare, food, agriculture and education professionals
in their digital transformation while ensuring the
population’s needs are also met. Orange and Axa jointly
acquired a majority stake in DabaDoc, a Moroccan
health-tech that streamlines the appointment booking and
remote consultation process. We support business
performance and local employment by offering SMEs an
Orange
ever-expanding range of IT services, particularly for cloud
computing and cybersecurity. The Group’s performance in
the Enterprise market increased 15% in 2021. Furthermore,
Orange completed the acquisition of the strategic Etix
Everywhere data center in Morocco, and Orange Business
Services signed a contract to build and operate a data
center as part of the New Administrative Capital project in
Egypt. To keep pace with this growth, our Digital Institute
provides digital adoption and skills training courses to help
our employees in their career development.
Content production and distribution
— Content activities are central to Orange’s strategy
as a local and responsible operator. We expanded our
range of TV and video content in 2021. Furthermore, we
support local audiovisual productions, including “The
Gravedigger’s Wife” and “Above Water”, which won the
most prestigious prizes at FESPACO, the Panafrican Film
and Television Festival of Ouagadougou in Burkina Faso.
Through our partnership with Deezer, Orange customers
in Egypt and Morocco have unlimited access to 73 million
tracks. What’s more, our customers can access a large
selection of novels, newspapers, local magazines and
educational resources via Nextory (ex-Youboox) in Tunisia
and YouScribe in six other countries. This cultural
contribution is why Orange was the most powerful brand
in its market in 10 countries in 2021.
Digital support
— Our commitment to developing people’s digital
skills is another way we demonstrate our local presence.
Doorways to new opportunities, our nine Orange Digital
Centers (ODCs) are a key step forward in our commitment
to digital equality in Africa and the Middle East (see
page 79). ODCs bring together three complementary
programs—a coding school, a Solidarity FabLab and an
Orange Fab start-up accelerator (over 250 African
start-ups have received support to date). They are
supported by the Orange Ventures investment fund,
which allocated €50 million to the region, some of which
was earmarked for seed funding for tech start-ups in
Orange’s operating countries.
47
135.4 m
mobile customers
African football
Partner since 2008
We celebrated the Africa Cup of
Nations held in Cameroon in 2022 by
doing something positive for the
environment. Plastic waste was
collected and recycled across
11 countries as part of our “Orange
Sponsors Change” program. In
Cameroon, 14 metric tons of plastic
will be turned into equipment for
football academies. We also
organized local tournaments for
12- to 13-year-olds. The winners will
represent their country at the
international Orange Sponsors
Change final in summer 2022.
2021 Integrated Annual Report
48
Growth areas
Orange Bank
goes from strength to strength
Mobile financial services—a strategic growth area for Orange—
underpin the soaring global demand for mobile banking
solutions, a trend largely accelerated by the Covid-19 pandemic.
The Group’s strategy is paying off, as there are now 1.7 million
Orange Bank users across France and Spain. As a wholly owned
subsidiary of the Group, since the acquisition of Groupama’s
21.7% stake in 2021, Orange Bank offers cutting-edge banking
services that are mobile-native and work in synergy with our
broader telecoms activities.
Mobile-native banking services
— When Orange launched Orange Bank in 2017, it
became the first telecoms operator in the French retail
banking market to offer innovative mobile banking
services, enabling customers to view transactions in real
time, transfer money instantly by text message and make
contactless payments using a bank card or a mobile
device. Since day one, the bank has regularly expanded
its service portfolio and enhanced its customer
experience. Its innovative solutions have proven
successful. In France, for example, Orange Bank ranks
among the top five neobanks and the Orange Bank app
was named by MoneyVox as the best banking app in
2022, with a 92.2% satisfaction rating. The app is also the
highest rated banking app on app stores in Spain, with a
rating of 4.9/5. Supported by a fraud response team, the
bank harnesses Orange Cyberdefense’s expertise in
identifying malicious websites that could put it at risk of
identity theft. In response to an ever-growing rise in online
fraud attempts, Orange Bank was one of the first banks in
France to anticipate the revised Payment Services
Directive (PSD 2).
€1.2 bn
granted in loans by
Orange Bank in Europe, a
64% increase year-on-year
Orange
49
Commercial success
— In France, Orange Bank attracts 40,000 new
customers each month, with 90% signing up to fee-based
services. In 2021, 44 of the 100 mobile telephony
interactions in Orange stores related to banking queries
covering insurance, accounts and financing. What’s more,
Orange Bank has accumulated 140,000 customers since
its launch in Spain in 2019. Our strong growth in France is
supported by our 2,000 advisors, who are certified to act
as intermediaries in banking operations and payment
services and provide customer support in over
300 Orange stores. This helps us stand out in the
competitive neobank market. Groupama also retains its
status as a key commercial partner for Orange Bank,
contributing to almost a third of loans granted by the bank.
Acquisitions and combined service
packages
— To broaden our service portfolio, increase visibility
and attract new customers, Orange Bank is continuing to
expand through an acquisition strategy that capitalizes on
the success of packages combining banking and
telecoms. Having acquired Orange Courtage in 2020 to
expand its insurance brokerage business, Orange Bank
reached another milestone in 2021 when it acquired
Anytime, a neobank for professionals and businesses.
Today, Orange Bank can offer millions of Orange business
customers financial support and new digital management
tools. In 2021, Orange Bank joined forces with Younited
Credit—a leading French fintech company—to accelerate
its expansion into the consumer credit market.
Today, Orange Bank is launching new fee-based
services as part of its upselling strategy. For instance, the
“Pack Premium” family banking proposition includes an
option to add one person as a joint holder to each child’s
account and a second Premium card (which can be given
to a child over the age of 18, for example).
Customer experience
Reinventing the customer
relationship
Orange Bank has implemented a new
customer relationship model, using
artificial intelligence tools acting as a
first point of contract for existing and
potential customers. One such tool is
Djingo, a virtual assistant available
24/7. Djingo processes an average of
100,000 conversations per month,
including 76% from start to finish
without needing to redirect
customers to “contact us” forms or
messaging services.
2021 Integrated Annual Report
50
Growth areas
Orange Money,
providing access
to mobile financial services
As our core financial services solution in Africa and
the Middle East since 2008, Orange Money enables people
to transfer money and make payments using mobile devices
in 17 countries. With an ever-expanding range of features,
Orange Money is synonymous with financial inclusion across
the region, where many people do not have a bank account.
Enhancing financial inclusion in Africa
and the Middle East
— Orange mobile customers can open an Orange
Money account free of charge with their mobile phone at
one of 400,000 points of sale. Today, over 25 million
customers use Orange Money to complete financial
transactions, such as transferring money, making
payments online or in local stores and paying bills. We
are constantly adding innovative solutions to our range
of products and services. Since 2020, users have been
able to access credit and savings products through
Orange Bank Africa. Users without a smartphone can
use a QR code card to access Orange Money services
easily. Entrepreneurs can carry out banking transactions
and track their income using O’Calm, a service launched
in Côte d’Ivoire that will soon be extended to other
countries. Meanwhile, we have continued to develop our
basic services, including international money transfers.
For example, in 2013, Orange Money became the first
provider in the market to offer an international money
transfer service, starting in West Africa before branching
Our mobile
banking solutions
enhance financial
inclusion.
Over
1 m
loans granted in 2021
Orange
51
Orange Bank Africa
Expanding the Orange
Money offer
Launched in Côte d’Ivoire in 2020,
Orange Bank Africa builds on the
success of Orange Money. Tik Tak, a
fully digital savings and credit product
offered by Orange Bank Africa, has
enabled more people to apply for
bank loans in Côte d’Ivoire. Mobile
phone users can access loans of
between XOF 5,000 and XOF 250,000
and can open a savings account with
as little as XOF 1 via Orange Money.
The technologically advanced
screening process involves analyzing
customers’ Orange and Orange
Money habits to determine whether
they qualify for a loan—in less than
10 seconds. Orange Bank Africa was
named “the most innovative bank” by
a panel of private sector development
and finance experts within CGECI, the
main employer organization in Côte
d’Ivoire. This award therefore
cements our position as a leading
provider of digital banking services.
400,000
Orange Money points
of sale in Africa
and the Middle East
2021 Integrated Annual Report
out into countries where Orange does not operate,
including in southern Africa. Users can now send money
from France, Belgium and Italy to countries in Africa.
This service is available to all users of the Orange Money
Europe app, regardless of their operator.
Driving growth with digital
technology
— The Orange Money app offers users a simple and
smooth experience while ensuring they can access our
retail partners within a dedicated marketplace. The
Orange Money distribution network is also seeing the
fruits of the digital transformation, as new tools offer
resellers in the field a robust app that saves them time
while simplifying the customer experience.
Ensuring compliance
— In response to risks such as fraud, money
laundering and various other offenses, Orange Money
has set up financial institutions with Central Bank
approval in 12 countries and a mutualized compliance
expertise center for mobile financial services, ensuring
best practices are applied in an increasingly demanding
regulatory environment. Central banks have issued a
number of directives regulating mobile money
transactions in recent years. Our goal is to ensure full
compliance with regulatory requirements. We must use
our position to set a good example by complying with
rules and standards and effectively combating money
laundering and terrorist financing.
52
Growth areas
Gaining a stronger foothold
in Europe
Orange has eight operating countries in Europe and generates
nearly 80% of its revenues across the continent. The Group
continues to deploy very high-speed fixed and mobile
networks, while exploring local consolidation opportunities.
This strategy, combined with our efforts to continuously
improve the customer experience and diversify into new
services, enables us to gain a stronger foothold in this highly
competitive market, which has considerably more operators
than the Americas or China.
Excellent commercial performance in France
— Fiber is key to commercial growth in France. In 2021, we gained 1.4 million new fiber
customers, over 53% of whom were completely new customers. Orange France reached 6
million fiber customers in early 2022. These milestones demonstrate the success of the
Group’s copper-to-fiber migration strategy, which has enabled us to maintain our fixed
broadband market share throughout the country. The deployment of the fiber network
exceeded 80% of the objectives set for 2023. At end-2021, 28.8 million homes were FTTH
connectable. As for mobile networks, Orange reported a strong growth in net sales, largely
driven by the success of premium products and services and revised prices. Orange France is
also pursuing a responsible 5G deployment strategy that involves prioritizing built-up areas. At
end-2021, 32 cities were covered by 5G. Despite very strong competition, Orange recorded its
lowest churn rate in four years in the last quarter of 2021. We achieved high customer
satisfaction levels by leveraging data and artificial intelligence to enhance our digital
pathways. Our growth strategy for 2022 focuses on premium (fiber and 5G) packages for retail
customers, a diverse multi-service offering (home surveillance, insurance and Orange Bank)
and business support services.
Orange
An Oscar-worthy
content strategy
Orange is consolidating its role
as a content super-aggregator
as part of its customer
convergence strategy in Europe,
with almost 12 million homes
connected to TV, including 44% to
FTTH. Orange Content teams
help our European subsidiaries
continuously expand their
content offering through
partnerships (Netflix, Canal+,
Amazon, Disney+, HBO). In
France, Orange is developing an
ambitious policy for producing
and releasing movies and series.
Our subsidiary Orange Studio
co-produced “The Father”, a
successful feature film released
in 2021 that won two Oscars and
one César. OCS—the Group’s
premium streaming platform for
movies and series—offered
2.9 million customers in France
exclusive access to the first
season of the series “L’Opéra”,
Orange’s first home-grown
original series co-produced by
Orange Studio.
Gearing up
for Paris 2024
Orange is a Premium Partner of
the Paris 2024 Olympic and
Paralympic Games, which are
expected to be the most
connected sporting event ever
and watched by 4 billion viewers.
Over 100 sporting venues and
other sites will be equipped with
fiber and 5G technology—an
unprecedented technical feat
made possible by 1,000 expert
Orange employees, engineers and
technicians. Paris 2024 has
pledged to hold the first
carbon-neutral Summer Games.
As a co-architect responsible for
technology, we have contractual
commitments to minimize our
carbon footprint and contribute
to achieving this historic objective.
53
Convergence
A growth driver
Orange offers combined services of high-speed
fixed and mobile telecom services. Bundling
services enables us to retain customers while
increasing our average revenue per user.
11.5 m
convergent customers
Consolidation in Europe
— In Spain, despite a decline in annual revenue, the number of very high-speed fixed
broadband customers remained steady, while convergence and mobile contracts were up on
2020. Furthermore, Orange reduced its portfolio from five brands to three (Orange, Jazztel and
Simyo). At the beginning of 2022, Orange entered into exclusive negotiations with the operator
MásMóvil with a view to forming a 50/50 joint venture. Valued at €19.6 billion, the future entity
will serve 7.1 million fixed broadband customers and 20.2 million mobile customers, generating
over €7.5 billion in revenues. This move is expected to unlock synergies of around €450 million
per year starting in three years’ time as well as opportunities offered by the consolidation of the
Spanish market.
In Belgium and Luxembourg, Orange enjoyed moderate growth in 2021. In Belgium, the
number of postpaid mobile customers grew 3.9%, notably from new data tariffs. What’s more,
at the end of 2021, Orange Belgium signed an agreement to acquire a 75% stake minus one
share in the cable operator VOO. This acquisition will give Orange Belgium a very high-speed
broadband network in Wallonia and part of Brussels, thereby strengthening its convergence
strategy.
In Poland, Orange announced the launch of a new strategy for 2021-2024—“.Grow”— to
attract additional customers by expanding the country’s fiber network. At end-2021, 5.9 million
lines were FTTH connectable, an increase of 900,000 on the previous year.
In Romania, to become a convergence leader, Orange acquired a majority stake in Telekom
Romania. Together, they will draw on their combined telecom infrastructure and expertise to
provide comprehensive bundled services including landline, mobile and television. What’s
more, Orange launched 5G services in Slovakia in 2021. Additionally, Orange Moldova
launched a migration project with a view to deploying a 100% fiber-optic network by the end of
2022 and switching all copper network customers over to the fiber network in 2023. The launch
of the “Love” convergence package also supports our growth in the country.
2021 Integrated Annual Report
54
Growth areas
Guiding businesses through
their own digital transformation
Orange Business Services is a network-native digital services
provider that combines the DNA of an operator with the
expertise of a service integrator. This foundation allows us to
provide solutions across the entire digital value chain, guiding
2.5 million professionals, 35,000 French local authorities and
companies with over 50 employees, 3,000 large national
companies and 1,000 multinational companies through their
own digital transformation. Our goal is to help companies
derive maximum value from their data all around the world to
transform their business lines, rethink their services and make
a positive impact.
Enovacom
E-health solutions
Orange Business Services’
healthcare software subsidiary
Enovacom—a provider of
interoperability solutions—works with
more than half of the healthcare
establishments in France. In 2021,
the company launched Enovacom
Patient Link to help healthcare
establishments embrace a more
digital approach to patient care.
This solution helps healthcare
workers better manage their
workload and streamlines their
interactions with patients while
improving patient care and saving
time.
Trusted cloud services and end-to-end
support
— According to research and advisory company
Gartner, the accelerating shift to the cloud means that
51% of enterprise IT budgets will go to cloud computing
solutions in 2025, compared with 41% in 2022. In
response to this trend, we provide our own infrastructure
solutions and a comprehensive range of services spanning
audits, migration and critical application management,
including in a multi-cloud environment. We also provide
our customers with cybersecurity and digital sovereignty
assurances when required for data and related processing
activities. Furthermore, we help companies develop new
services harnessing big data, artificial intelligence and
edge computing.
This expertise earned Orange Business Services a
“Very Strong” rating in GlobalData’s report on managed
hybrid cloud services (hybrid clouds combine public and
private cloud resources). What’s more, our expertise has
Orange
been recognized by GÉANT—the provider of a backbone
network for Europe’s research and education
community—which is now using our cloud services for
8,000 establishments across Europe, reaching 50 million
users.
Smart manufacturing partners
— A new generation of digital tools for equipment
traceability, process optimization and machine
maintenance is paving the way for new production
methods as part of Industry 4.0. Orange Business
Services is helping to drive this revolution by guiding
manufacturers through their transformation, leveraging
the possibilities offered by data mining and IT/OT
convergence (the integration of information technology
systems with operational technology systems). For
instance, Safran Aircraft Engines chose the IoT Smart
Tracking solution to optimize equipment traceability in its
workshops. Additionally, Siemens Digital Industries and
Orange Business Services announced a strategic
partnership in 2021 to bring manufacturers a joint
portfolio of solutions for predictive maintenance, scalable
connectivity and manufacturing resilience. Furthermore,
Orange Business Services established a partnership with
Lacroix, Sierra Wireless and STMicroelectronics to
launch “IoT Continuum”, an initiative to accelerate the
mass deployment of Internet of Things (IoT) projects.
Network virtualization for greater
operational efficiency
— In 2021, BNP Paribas turned to Orange Business
Services to accelerate its digital transformation, migrating
to a software-defined wide area network (SD WAN). This
SD-WAN leverages network functions virtualization (NFV)
technology to offer flexibility and agility in response to
changing uses, while guaranteeing service continuity.
Developed with Cisco, our Flexible SD-WAN solution
enabled us to deploy the highest digital standards quickly
and easily across 1,870 BNP Paribas sites and multiply
the bandwidth of the bank’s network by ten.
55
Innovation
Stretching as far as
outer space
The increasingly dense satellite
network above us generates large
amounts of earth observation data.
Orange Business Services is leading
a consortium comprising HPE, Scality
and Tealenium to facilitate data
storage and security for programs
carried out by the French government
space agency (CNES). A data lake (a
central repository) will provide CNES
users with simple, quick and secure
access to over 100 petabytes of data
for applications including
transportation network optimization,
environmental studies and
agricultural research.
60%of our BtoB revenue will be
generated through
new connectivity services
(SD-WAN, 5G) and IT services
in 2025
2021 Integrated Annual Report
56
Growth areas
Orange Cyberdefense,
a leading provider of
cybersecurity services in Europe
The more we depend on digital tools in business and our lives,
the greater the need for security across all digital networks.
Orange’s 25 years of experience in cybersecurity means we’re
well placed to offer businesses, local authorities and
administrations solutions designed to protect their digital
assets.
In 2021, Orange’s
cyber threat detection
centers analyzed over
60 billion security
events each day,
investigated more
than 94,000 security
incidents and
implemented over
230 incident response
plans.
Source: Orange Cyberdefense Security
Navigator 2022
— According to the security report published by
Orange Cyberdefense in 2021, cyber attacks against
public- and private-sector entities had risen by 13%,
primarily due to the surge in online activity (remote
working, e-commerce, entertainment, etc.). Solutions
designed to protect data and IT systems need to keep
up with the ever-changing cyber threat landscape. With
2,500 researchers and analysts and 32 cyber threat
detection centers, Orange Cyberdefense is a leading
provider of cybersecurity services in Europe and can
therefore play a key role in building a safer digital
landscape.
Protecting organizations
— Set up in 2014, Orange Cyberdefense helps
protect key players in the economy—such as critical
network operators—and small organizations, which are
increasingly targeted by hackers. Keenly aware of how
important IT security is to small- and medium-sized
enterprises, we provide comprehensive solutions
Orange
57
adapted to their needs. Our threat intelligence (the
process of collecting and classifying cyber-attack data)
and resulting solutions are constantly updated to reflect
the shifting threat environment, harnessing the latest
developments in AI and machine learning. These
solutions incorporate incident data to generate attack
scenarios and anticipate hacking attempts,
complementing our analysts’ expertise.
The high-quality solutions provided by Orange
Cyberdefense have enabled it to fulfil strict accreditation
criteria. In 2021, the French national cybersecurity agency
(ANSSI) listed it as an accredited provider of cyber security
incident response, cyber security incident detection and
IT security audit services (denoted by the acronyms
“PRIS”, “PDIS” and “PASSI” in French).
All these strengths combined have enabled Orange
Cyberdefense to generate €838 million in revenues in
2021, an increase of 14% on a like-for-like basis from
2020.
Protecting society
— Online security requires more than security
systems and solutions alone—most of the time it
depends on the behavior of individuals and groups.
Organizations should therefore engage in training and
awareness raising initiatives and develop internal IT
security policies and incident response plans.
Cybersecurity has become a top priority for
governments. For instance, the French national
cybersecurity agency (ANSSI) listed Orange
Cyberdefense as an accredited provider of services in
line with the national cybersecurity strategy outlined as
part of the France Relance economic recovery plan and
the PIA future investment plan. Its ability to develop
tailored strategies has earned Orange Cyberdefense its
key position as a provider of cybersecurity services to
administrations, local authorities, healthcare facilities
and public bodies.
OINIS SEC
Safeguarding the security of
international networks
Orange International Networks
Infrastructures & Services (OINIS), the
Group’s international technical
department, provides network
services and infrastructure to our
wholesale customers (B2C operators,
companies, etc.). These robust
networks can resist cyber attacks,
harnessing the latest automation,
artificial intelligence and big data
technologies. OINIS set up OINIS SEC
in June 2021 to enhance its network
security services. This new entity
pools expertise, resources and tools
to fight cybercrime across Orange’s
international networks, infrastructure
and services.
2021 Integrated Annual Report
58
59
Environment
f Key performance indicators
f Reducing our carbon footprint
f Making greater use of renewable energy
f Boosting our circular economy
f What does net zero carbon emissions mean?
Orange
2021 Integrated Annual Report
60
Environment
Key performance indicators
In response to the climate challenge, Orange aims to achieve
net zero carbon emissions by 2040—10 years earlier than the
objectives set by the GSMA global telecoms industry body.
The Group’s threefold strategy consists of reducing its
carbon emissions, making greater use of renewables and
boosting its circular economy.
Reduction in scope 1 and 2 CO2
emissions compared with 2015 levels*
Target for reduction in scope 3 CO2
emissions between 2018 and 2025*
Objective: 30.0% in 2025
12.1% in 2021
14.0%
Biodiversity
31 MSA.km²
* Objectives approved by
the Science Based Targets initiative (SBTi)
The Group’s estimated “static terrestrial
scope 1” impact on biodiversity. The
indicator MSA.km2 (Mean Species
Abundance) converts a company’s impact
into an equivalent area where 100% of the
biodiversity would be lost.
Over €1 bn
The revenue generated by our
Orange Business Services solutions
to help customers reduce
their environmental footprint
Orange
61
Nearly
500 GWh/year
Over
17 m
to be delivered under signed PPAs (Power
Purchase Agreements), eventually
covering 9% of Orange’s electricity
consumption in Poland, 10% in France and
50% in Spain
unwanted mobile devices collected by
Orange in 10 years
Electricity consumption from
renewable sources
Collection rate of unwanted mobiles
in Europe
Objective: 50.0% in 2025
36.3% in 2021
*
31.3% in 2020
Objective: 30.0% in 2025
20.4% in 2021
10.2% in 2020
* On a comparable basis.
6,000
sites equipped with solar panels
in Africa and the Middle East, i.e., over
16% of mobile sites in the region
117 GWh
Our annual renewable energy production
(equivalent to the consumption of
around 40,000 homes in France)
Data at 31.12.2021
Almost €58 m
saved in 2021 through the development of
the circular economy for our network
equipment (capital expenditure avoided or
saved)
2021 Integrated Annual Report
62
Environment
Reducing our carbon
footprint
Ever-increasing digital needs pose a major challenge to
operators, as they are expected to provide greater connectivity
at higher speeds while reducing their carbon emissions. In
other words, they must strive to decouple growing demand
from growing environmental impacts. In line with the Paris
Agreement scenario of limiting the global temperature rise to
1.5°C above pre-industrial levels, Orange has set out to achieve
net zero carbon emissions by 2040, 10 years earlier than the
objective set by the GSMA global telecoms industry body.
Focusing on our network carbon footprint
— In 2021, networks and IT systems accounted for 82% of the Group’s overall energy
consumption and 87% of its CO2 emissions. The Green ITN energy consumption action plan
launched in 2008 entered its second phase, the “Green program”, in 2021. It harnesses a
number of new tools, including artificial intelligence, advanced standby mode and enhanced
active network sharing. The action plans deployed in 2021 helped limit the rise in the Group’s
energy consumption to 2.3% compared with 2020, on a comparable basis, despite a
significant increase in traffic. These results were also achieved by strengthening cooperation
with our suppliers to develop highly energy-efficient telecommunications equipment. Sharing
the Group’s networks and mobile technical environment, which accounts for a large
proportion of energy consumption across our network, is another effective way of reducing
energy expenditure. By the end of 2021, network-sharing agreements had been established
for 53.8% of radio sites (with 26.1% covered by active network-sharing agreements), resulting
in lower energy consumption.
Meanwhile, we continue to improve the eco-efficiency of our data centers by optimizing
occupancy rates and boosting energy efficiency. In France, Orange operates three
new-generation data centers which are secure, resilient, and eco-efficient (consuming 30%
less energy than standard data centers while offering the same capacity, notably thanks to a
natural cooling system called “free cooling”). We are building a new data center to the same
high standards in Poland. Finally, copper decomissioning has already saved energy in Poland
and will be carried out in France in 2023 (see page 31).
Orange
The EU
Taxonomy
This classification system is
designed to shift investments
toward environmentally sustainable
economic activities. The European
Commission has adopted a gradual
approach, starting with sectors
with the highest greenhouse gas
(GHG) emissions. Sector-wide
contribution to sustainability
should become clearer as the
Commission’s work progresses.
Even though our activities can
make a positive contribution to
adapting to and mitigating climate
change, most of them do not
currently meet the EU Taxonomy
criteria. Our eligible activities
include our hosting and data
processing services, services
related to the Internet of Things and
the solar panel installation service
available to Orange customers in
Poland, accounting for 1.4% of our
revenue in 2021 and €83.4 million of
our capital expenditure.
Measuring and
reducing our impact
on biodiversity
A study conducted by The
Biodiversity Consultancy in 2021
concluded that Orange’s direct
impact on biodiversity was minimal.
The impact of our activities is most
marked across scope 3—indirect
emissions––which are harder for
the Group to influence. By investing
in carbon sinks to help reverse
biodiversity loss and embracing the
circular economy to reduce the
exploitation of natural resources,
Orange could achieve a “net zero”
impact on biodiversity—in addition
to net zero carbon emissions—
around 2040. However, if
biodiversity impact assessments
continue to gain ground, Orange
will make further commitments
using the Science-based Targets
Network (SBTN) methodology.
63
Opting for more energy-efficient solutions
— The Group is targeting a 20% reduction in energy consumption across its building
stock between 2015 and 2025. In France, a number of actions are already underway. The
deployment of the “HQE Exploitation” certification across a number of large sites within the
Group enables us to ensure environmental considerations are taken into account during the
operation phase of these buildings. In addition, the Group’s real estate department has
launched a digital consumption management platform to respond to the Group’s ambition and
the regulatory requirement of Éco Énergie Tertiaire, a French government energy efficiency
initiative. 3,800 sites are covered in total, including 700 by the regulation.
Meanwhile, we are continuing to introduce electric vehicles into our fleet. We now have
more than 2,200 electric vehicles—an 89% increase in the space of a year. We had over
3,800 car-sharing vehicles at the end of 2021. We have reduced the size of our vehicle fleet in
France by an average of over 4% per year since 2015, and we have stopped the purchase of
diesel cars since 2020. Furthermore, Orange gives its teams access to video conferencing
facilities and collaborative tools to minimize business travel.
Creating our first catalog of eco-friendly solutions
— In 2021, Orange Business Services put together its first catalog of eco-friendly
solutions designed to help customers reduce their carbon emissions. These solutions relate
to virtual communication (remote working and conference calling tools), innovation
(eco-friendly web development, the eco-management of mobile fleets and infrastructure
virtualization) and new IoT applications (Smart Eco-Energy to optimize the energy
performance of buildings and Ocean Fleet Management to optimize vehicle fleets).
Capturing residual emissions
while supporting regional development
— Orange launched an ambitious plan in 2021 to offset its estimated residual emissions
by 2040. To achieve this goal, it funds natural carbon sink projects (involving forests,
mangroves, etc.) to support regional economic and social development. These projects also
have a positive impact on biodiversity. In 2021, Orange teamed up with the management
company Mirova (Natixis Investment Managers) to create Orange Nature, an innovative
single-investor carbon fund with an investment envelope of €50 million and returns in the
form of high-quality carbon credits. We also contribute to the Livelihoods Carbon Fund 3
along with other investors to offset residual carbon emissions. We also work with local
stakeholders such as Alliance Forêts Bois in mainland France and the non-profit Nébéday in
Senegal.
2021 Integrated Annual Report
64
Environment
Making greater use of
renewable energy
Committed to achieving net zero carbon emissions by 2040,
Orange aims to obtain 50% of its electricity from renewable
energy sources by 2025. The Group is therefore ramping
up low-carbon energy production and insulating its energy
supply chains from market volatility.
Nearly
70%
of our electricity needs
in Jordan are met by
three Orange solar farms
Renewable electricity purchase contracts
in Europe
— Orange is increasing its renewable energy supply
in European countries through Power Purchase
Agreements (PPAs). These long-term contracts guarantee
green electricity at a pre-agreed price.
Orange signed two PPAs in France in 2021—a
20-year PPA with TotalEnergies for 100 GWh of
renewable solar energy per year and a shorter, 15-year
PPA with Engie to develop two solar projects in France
which will eventually produce 76 GWh of energy per year.
These two agreements will help meet the Group’s
long-term power supply needs. By the end of 2021, the
Group had signed PPAs in Europe for a total capacity of
500 GWh/year—10% of Orange’s annual electricity
consumption in France, 9% in Poland and 50% in Spain.
Additionally, renewable electricity is sourced in some
European countries through agreements under which
suppliers must present a Guarantee of Origin. In 2021,
Orange
65
these agreements accounted for 34% of scope 2
emissions across Orange Business Services, 36%
across Orange Spain and 67% across Orange Slovakia
and provided for all of Orange Belgium’s electricity
needs.
Solar farms in Africa and the
Middle East
— Orange is installing solar farms and equipping its
technical sites with solar panels in Africa and the Middle
East as part of an infrastructure investment program that
also involves collaborative projects with energy service
companies (ESCOs, see paragraph on the right). By the
end of 2021, around 6,000—or 16%—of the Group’s
sites in Africa and the Middle East had been equipped
with solar panels to power facilities. We also began
extending a number of solar farms to provide local
residents with power via a mini-grid system (an off-grid
electricity distribution network involving small-scale
electricity generation). This system has been up and
running in the Democratic Republic of the Congo since
November 2021.
In Jordan, nearly 70% of our electricity needs are met
by our three solar farms. A similar solution will be
implemented in Mali, where the Group will install a
25 MW solar power plant that will produce 48 GWh of
energy and boast a storage capacity of 30 MWh. In 2021,
Énergie du Mali SA and Orange Mali signed a
memorandum of understanding on transporting and
purchasing any surplus electricity.
Orange’s annual renewable power consumption in
Africa and the Middle East amounts to 117 GWh (the
consumption of around 40,000 homes in France). This
allows us to reduce fuel consumption by over 53 million
liters per year and emissions by almost 142,000 metric
tons of CO2 equivalent.
36.3%
of the Group’s electricity
comes from renewable
sources, compared with 31%
in 2020
ESCOs
Virtuous partnerships
In Africa and the Middle East, Orange
has partnered with energy service
companies (ESCOs) whose role is to
handle investment, installation,
modernization and operational
management relating to the electricity
generating infrastructure that powers
certain Group operations. These
solutions help optimize electricity
consumption, supply and service
reliability, environmental impacts and
energy expenditure.
2021 Integrated Annual Report
66
Environment
Boosting our circular economy
For many years, Orange followed a linear extraction-
production-distribution-installation-disposal model, which had
a considerable impact on the environment and society. The
Group has therefore pledged to ensure key circular
economy principles are a core feature of its strategy, processes
and business lines. Our eco-design approach and repair,
refurbishment, collection and recycling solutions prolong the
lifespan of equipment and devices and add to the range
of end-of-life management options available for different
materials.
Almost
17m
unwanted mobile devices
collected by Orange over
10 years
Developing branded products in line with
an eco-design approach
— In 2021, we defined a process to ensure all
electronic products sold under the Orange brand would
be developed in line with an eco-design approach by
2025. This 16-step process targets each stage of the
product and service life cycle, from upstream
development to end-of-life management. It also ensures
environmental and functional considerations are
systematically taken into account from the design phase.
Orange product managers receive eco-design training to
get to grips with this new process, which has already
been followed for the next-generation Livebox.
We also launched the Neva Leaf, our first smartphone
developed in line with eco-design principles, in France.
Made from 20% recycled plastic, this smartphone has
been awarded an excellent repairability score of 8.8/10 for
its sturdy, modular design that allows customers to
replace the battery and screen themselves. The current
goal is to launch the device in Europe, starting with
Poland in 2022.
Orange
Recycling and extending the lifespan
of devices
— Orange aims to collect and recycle the equivalent of
30% of the phones sold in Europe by 2025. We are on the
right track to meeting this goal, achieving a collection rate
of 20.4% in 2021 versus only 10.2% in 2020. Furthermore,
we achieved a collection rate of 67% for leased equipment
(including domestic equipment such as routers and
set-top boxes) in 2021 (see page 306 of the 2021
Universal Registration Document). In line with our
environmental ambitions, we want to increase this figure
to 90% by 2025.
In a bid to extend the lifespan of phones, we are
committed to offering appealing repair services in our
operating countries in Europe. We took steps in the right
direction in 2021 by further enhancing our service
portfolio. The Group has pledged to ensure refurbished
devices make up 10% of sales in Europe by 2025. We
recently signed purchase agreements with several
suppliers to meet an ever-growing demand for
second-hand phones.
Placing the circular economy at the heart
of our infrastructure
— Our commitment to embracing the circular
economy also applies to our core business, which means
we’re using more refurbished equipment for our network
infrastructure and data centers. In 2020, Orange
launched the Orange Sustainable & Circular Ambition for
Recertification (OSCAR) program and its internal
Marketis platform to facilitate the purchase and sale of
refurbished equipment. Used equipment is made
available for reuse both internally and externally. We’ve
also signed agreements with several partners to develop
the purchasing of refurbished equipment. In this first year
alone, more than €10 million has been saved. Elsewhere,
through its role in GSMA, Orange and 21 other telecoms
operators developed a strategy paper on the subject
which was presented at the 2022 Mobile World
Congress.
67
Scarce resources
Towards sustainable usage
To limit the use of scarce and critical
resources in product production
processes, Orange uses a database
that includes an up-to-date record of
each material. This database provides
a basis for performing risk analyses
and finding suitable substitutes for
resources. The Group also
encourages its suppliers to choose
recycled resources over rare
materials whenever possible. We also
support the development of recycling
channels for electrical and electronic
waste, which could contain up to
40 times more extractable ore than
subsoil.
Almost
€58 m
saved in 2021 through the
development of the circular
economy for our network
equipment (capital
expenditure avoided or saved)
2021 Integrated Annual Report
68
Analysis
What does net zero carbon
emissions mean?
Carbon neutrality—an overall balance between the emissions
produced and eliminated from the atmosphere—can only be
considered on a global scale. Orange aims to achieve “net zero
carbon emissions” by 2040 in line with the Paris Agreement
scenario of limiting global warming to 1.5°C above
pre-industrial levels. What does this involve in concrete terms?
Keeping our emissions down
Achieving net zero carbon emissions primarily involves keeping greenhouse gas (GHG)
emissions down to a minimum. The first step is to reduce scope 1 emissions, direct GHG
emissions associated with fuel consumption in buildings and vehicles. The second is to
reduce scope 2 emissions, indirect GHG emissions associated with purchasing electricity for
networks and buildings. Orange has already initiated plans to increase our supply of electricity
generated from renewable sources, including wind, solar and hydro power. Addressing
scope 3 emissions is important even if they extend beyond a company’s direct control and the
methodologies involved are not yet fully mature. This scope covers all upstream emissions
associated with suppliers, employee commuting and business travel and downstream
emissions associated with customer use. Scope 3 emissions can be reduced by optimizing
the purchase of raw materials, products and services, limiting business travel and employee
commuting, applying eco-design principles to products and services and managing waste
more efficiently.
Offsetting our residual emissions
Some of the greenhouse gases released by activities in various sectors cannot be avoided. As
part of a net zero carbon approach, only these residual emissions must be offset by natural
carbon sinks (such as forests, bogs and mangroves) or artificial sequestration processes.
Companies can create their own carbon sinks or fund those developed by others. The
concept of “net zero carbon emissions” is therefore different from “carbon neutrality”, a
balancing act that relies on offsetting options such as the purchase of carbon credits, which
does not meet the standards of additionality for climate change mitigation. Additionality is a
determination of whether CO2 sequestration projects have made a genuine reduction in
emissions above and beyond what would have happened anyway. A project is only “additional”
if it brings about changes in practices and behavior, new technologies or any other action to
accelerate the transition to the low-carbon future.
Orange
69
The Group is
targeting a
30 %
reduction in its scope 1 and 2
CO2 emissions between 2015 and
2025 in line with our net zero carbon
ambition
2021 Integrated Annual Report
70
71
Social
f Key performance indicators
f A responsible employer
f Diversity and inclusion are critical for sustainable
performance
f Supporting digital inclusion
f Financial instruments that reflect our commitments
f What are sustainability bonds?
Orange
2021 Integrated Annual Report
72
Social
Key performance indicators
As a telecommunications operator, we have a social
responsibility to our stakeholders and local communities.
Orange supports the significant digital transformations
shaping online and offline environments.
9,200
91%
recruitments on unlimited contracts
in 2021
of employees say they are proud
to work at Orange according to our last
Group-wide Employee Barometer
(conducted in 2020)
Percentage of technical roles
held by women
Percentage of management network
roles held by women
Objective: 25.0% in 2025
20.9% in 2021
20.5% in 2020
Objective: 35.0% in 2025
31.6% in 2021
31.1% in 2020
Orange
73
92%
of employees completed
at least one training program in 2021
€350 m
allocated to Orange Ventures,
the Group’s international technology
investment fund
Awarded
the GEEIS-AI
label
for inclusive artificial intelligence
€23.5 m
Nearly
140,000
invested by the Orange Foundation
in 23 countries in 2021
new people benefitting from Orange
Foundation’s programs
Number of Orange Digital Centers
Objective: 26 in 2025
9 in 2021
3 in 2020
Data at 31.12.2021
2021 Integrated Annual Report
74
Social
A responsible employer
For Orange, being a responsible employer means maintaining
the highest ethical standards and maintaining an attractive
work environment. That’s why our initiatives relating to quality
of life, health and safety, social dialogue and training aim
to offer our employees a work environment that matches
their expectations and reinforces a sense of belonging
and commitment across our workforce.
An open social dialogue process
at all levels
— Orange promotes an open social dialogue process
involving employees, trade unions and elected workforce
representatives. With that in mind, we have put in place
employee representative bodies with their own
prerogatives. The World Works Council reinforces social
dialogue at a global level while aligning with our CSR
development strategy, whereas the European Works
Council deals with economic, financial and social matters.
Complementary bodies include the French Works
Council, which is responsible for communication with
employee representatives in France.
91% of employees proud to work at
Orange
— According to our annual employee barometer,
which focuses on factors including quality of life at work,
91% of employees say they are proud to work at Orange
and 87% would recommend Orange as a great place to
work. These figures reflect the hard work carried out by all
our teams and departments in a range of initiatives such
as signing agreements in France for remote working,
workload assessments and adjustments, as well as
work-life balance.
2022-2024
Intergenerational
agreement
Under the new intergenerational
agreement we signed, 8,000 people
will be offered permanent contracts,
with priority given to those under 30
in business lines holding significant
value for the future of the Group.
Employees in the middle stages of
their career will be given the
opportunity to enroll in a university
course or a training scheme,
volunteer with non-profits, teach
classes or contribute to projects in
start-ups or SMEs for three to
12 months. More seasoned
employees will be given the option
of easing into retirement by shifting
to part-time work. Phased retirement
will allow eligible workers to scale
back their working hours over an
18- to 60-month period before they
fully retire. Employees will be able
to engage in skills-based
volunteering during this time should
they so wish.
Orange
A health and safety dashboard
— The global health and safety agreement lays out a
set of principles for the whole Group. For instance, all
employees have health insurance coverage and all entities
organize specific meetings to encourage social dialogue.
The “Quality of Life at Work by Orange” sessions held
worldwide focus on themes such as duty of care,
harassment and violence in the workplace. Our “health
and safety and quality of life at work” dashboard tracks
the impact of our initiatives using the same indicators for
all entities. It covered 99.4% of Group employees in 2021.
Skills development across teams
— The number of training hours offered to Group
employees rose 27% between 2020 and 2021 as a result
of the widespread shift to online training and the gradual
return to in-person training. We place great importance on
training, as demonstrated by the seven-point rise in our
Net Promoter Score (NPS), a trainee satisfaction metric. In
France, our Apprentice Training Center welcomed its
second intake of work-study students looking to
specialize in one of four technical roles to become data
analysts, cybersecurity engineers, cloud specialists or
customer service technicians. The center looks to ensure
a minimum of 30% of participants are women. A wide
range of CSR training courses was also launched for all
employees in 2021.
High levels of employee engagement
— The Group encourages volunteering (including
skills-based volunteering) among all employees. In 2021,
for instance, almost 300 employees in France volunteered
to facilitate digital workshops to help upskill clients and
at-risk communities on responsible and safe practices in
digital technology. More than 10,000 people took part in
these empowering workshops. Over 600 employees also
work as mentors for young people from underprivileged
backgrounds or areas with high rates of unemployment.
Launched in 2021, the Engagement Makers Prize awards
the active civic engagement of Orange teams around
three themes: net-zero carbon, equality, and solidarity.
75
27%
increase
in the number of hours of
training provided to Group
employees in 2021 compared
with 2020
Together 2021
A milestone for employee
shareholding
Open to 140,000 employees and
45,000 retirees, “Together 2021” is
the largest employee share
ownership plan ever launched by
Orange. The plan to involve
employees in the Group’s long-term
success was a resounding victory,
with all 26.1 million shares delivered
to over 64,000 subscribers across
37 countries on December 1, 2021.
As a result of the high uptake,
employee shareholders held 7.38% of
Orange’s capital and 10.8% of its
voting rights at the end of 2021,
bringing us closer to our target of
10% employee share ownership.
2021 Integrated Annual Report
76
Social
Diversity and inclusion are critical
for sustainable performance
Diversity and inclusion are key to innovation and critical
for sustainable performance, which is why they have been
priorities of ours for many years now.
Achieving gender equality
— Workplace gender equality has been a core focus of our strategy for over 15 years. The
Group’s international policy is underpinned by the global agreement signed with UNI Global
Union in July 2019. This agreement covers workplace gender equality, the fight against
discrimination and violence, work-life balance, etc. Local committees and a network of special
correspondents ensure the agreement is implemented in all of Orange’s operating countries. The
sixth Gender Equality and Work Life Balance Agreement was signed in late 2021 in France. It
builds on the commitments made since 2004, covering parenthood (with family-friendly
measures such as longer paternity leave) and the fight against domestic violence. We signed
charters on these two topics in 2021. What’s more, Orange achieved an overall score of 94 out
of 100 as rated by the French Ministry of Labor, Employment and Economic Inclusion in the
2022 Gender Equality Index.
Integrating people with disabilities into the workforce
— Having adopted the GSMA’s Principles for Driving the Digital Inclusion of Persons with
Disabilities in late 2020, Orange organized workshops in eight countries in Africa and the Middle
East to ensure a better understanding of the challenges involved at local level. To mark the
International Day of Persons with Disabilities, a special edition of the Orange.com magazine—
“Disability, neurodiversity: how can digital technology become more inclusive?”—presented the
initiatives led by the Group in its operating countries.
In France, we renewed the agreement on employing people with disabilities and combating
discrimination for a three-year period ending in 2023, placing particular emphasis on the
recruitment process. The Group firmly believes that cognitively diverse teams are the highest
performing, which is why it launched the Neuroteam program to boost the recruitment,
integration and happiness of employees with neurodiverse conditions (i.e., who are autistic, have
ADHD or learning difficulites, are gifted, etc.).
Orange
Hello Women
Orange is aiming to ensure women
hold 25% of its technical and
digital roles by 2025. As it stands,
women are under-represented in
these promising professions. In
2021, the Group launched its new
Hello Women program with a call
for projects in line with four
objectives: raise awareness,
identify, retrain and retain. In
France, four innovative project
leaders were supported in
implementing their initiative. At the
same time, 20 projects were
selected in 20 countries for a total
amount of nearly €1 million. They
will be launched in 2022.
Raising awareness
and providing training
The Group provides its teams with
training on inclusive management
and wellbeing in the workplace. In
2021, over 4,600 employees in
different countries took part in a
training module on celebrating
diversity. Since 2018, employees
have been offered an online training
course on workplace gender
equality with almost
19,000 workplace equality
certificates issued to employees in
France to date. The equivalent
international course launched in
2021 has been completed by
almost 10,000 people. In line with
the Group’s commitment to digital
content accessibility, Orange
launched a dedicated course,
completed by 1,600 employees by
the end of 2021. Orange also
supports the “Objectif IA” training
module co-developed by the
Institut Montaigne think tank, the
OpenClassrooms learning platform
and Fondation Abeona to increase
public understanding of artificial
intelligence (AI) in France and
further afield.
77
GEEIS-AI
Using artificial intelligence to
promote inclusion
Orange was awarded the international GEEIS-AI
label for designing, developing and using inclusive
artificial intelligence.
35.9%
of the Group’s workforce
was made up of women in 2021
Promoting all forms of diversity
— Promoting diversity means allowing the inclusion of everyone, regardless of their gender
identity, personal opinions, age, social and ethno-cultural background, sexual orientation, health
status or disability. As an active member of the non-profit organization l’Autre Cercle, the Group
takes part in activities such as the annual “LGBT+ Role Models and Allies” ceremony (two of our
employees received awards), as well as forward-looking projects such as Odyssey for Equality
(focusing on what the working world should look like for LGBTQIA+ people in 2031). In line with
its commitment to combat origin-based discrimination, Orange, through its partnership with the
non-profit organization Club 21e siècle, took part in the French Corporate Diversity Barometer
designed by McKinsey to measure the sociocultural diversity of the executive ranks of large
companies. The results were published in 2021.
Carrying out assessments
— Orange’s efforts to promote diversity and inclusion are assessed internally and externally.
According to the Employee Barometer conducted in 2021, 85% of employees think that
Orange’s workforce reflects the diversity existing in society. The Group is committed to
continuous assessment and improvement as part of the Gender Equality European &
International Standard (GEEIS) and GEEIS DIVERSITY labels. Since 2011, 20 Group entities in
18 operating countries have been awarded these labels following audits conducted by an
independent external body every two years. Orange ranked 78th overall out of 850 European
companies in the Financial Times Diversity Leaders 2022 ranking published in November 2021,
coming second in the telecoms sector. The Group ranked 23rd out of 4,000 companies
worldwide in Equileap’s 2022 Gender Equality Ranking, coming second in its sector.
Combating discrimination related to new technologies
— Following the launch of the International Charter for an Inclusive AI in 2020, 104 companies,
associations and universities have committed to promoting diversity at every stage of the data
value chain to ensure that all discriminatory biases are identified and controlled. In 2021, to
capitalize on this proactive approach and encourage the sharing of best practice, Orange and the
Arborus endowment fund launched an inclusive AI club, bringing together all signatories seeking
to improve their response to future challenges.
2021 Integrated Annual Report
78
Social
Supporting digital inclusion
Digital technology is a key driver of economic and social
development. Digital access is essential for a whole host of
services woven into our daily lives, including healthcare,
education, public services and information. Orange taps into its
full range of expertise and resources to improve accessibility
and help people acquire new digital skills. This commitment is
central to our Purpose and reinforced by our strategic plan.
Value creation
Providing services
with a positive impact
In 2021, to determine the value
created by our CSR actions, we
analyzed the impact of Orange
France’s digital inclusion services. In
2020, 4.6 million people benefitted
from these services, which drive
economic and social integration and,
in turn, create value for the people
involved. The positive impact of these
services was valued at €101.9 million
using social return on investment
(SROI) methodology.
Connecting as many people as possible
— Providing connectivity to as many people as
possible involves improving access to equipment and
services. That’s why Orange invests heavily in expanding
mobile network coverage and provides inclusive solutions
for vulnerable groups. Our “Tarifa Social” offering in Spain
is available to households living on the minimum wage,
providing them with access to fiber-optic internet, a
landline and a mobile line at a discounted price. The Sanza
range of affordable smartphones is available in
16 countries in Africa and the Middle East. Furthermore, to
address the digital divide affecting people with disabilities
and the elderly, Orange designs special products that are
innovative, straightforward and user friendly. For instance,
Orange France launched a senior-friendly smartphone, the
Swissvoice G80, in late 2021. Its streamlined features
include amplified sound, a simplified interface and
easy-to-use video calling.
Providing access to essential services
— Orange boosts access to essential online services.
In Africa, people can buy affordable individual solar
power equipment from Orange and pay for it in
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79
installments via Orange Money (see pages 50-51). To
increase access to healthcare services in areas where
there is a lack of facilities, the Group works with national
health authorities to provide remote medical information
and advice, vaccination reminders and family planning
services. What’s more, Orange has developed an
“education pass” mobile contract for online educational
content.
Educating people about
responsible use
— In response to the rapid growth of digital services,
Orange is educating the public—particularly young
people—about how to use them safely and responsibly.
We provide limited access plans in certain countries. For
instance, in Poland, “Safe Starter for your Kid” is an
affordable plan that includes parental control features and
unlimited calls with a parent. What’s more, we have also
introduced informative resources, workshops and training
courses on staying safe online. People can also take part
in free workshops on digital responsibility in the Group’s
European stores.
Teaching people how to use
digital tools
— Orange’s work on the ground focuses primarily on
unemployed young people, women in difficulty and
entrepreneurs. One example of this commitment in
action is our network of Orange Digital Centers (ODCs) to
help people learn new digital skills free of charge while
working on concrete projects. With centers already open
in nine countries (Cameroon, Côte d’Ivoire, Egypt,
Ethiopia, Jordan, Mali, Morocco, Senegal and Tunisia) in
2021, Orange intends to set up an ODC in each of its
26 operating countries by 2025. The Orange Foundation
leads a range of initiatives harnessing digital tools as a
means of integration, including digital centers, Solidarity
FabLabs, digital workshops, or digital schools. In 2021,
almost 140,000 people benefited from these training
initiatives.
1,250
digital schools
in 16 countries in Africa and
the Middle East
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80
Social
Financial instruments that reflect
our commitments
Orange uses a number of sustainable finance instruments
to enhance social and environmental responsibility, optimize
our finance structure and support entrepreneurship.
Our first sustainability bond issuance
— In 2020, the Group issued its first bond to the tune
of €500 million to support its social and environmental
commitments. The use of bond proceeds is audited on
an annual basis. In 2021, we published our first
sustainability bond allocation and impact report, giving
details of the projects chosen, the proceeds used and
the impacts achieved for each project category. By the
end of 2020, the Group had provided almost €328 million
in funding to social projects by deploying fiber optic in
rural France. Environmental initiatives funded by Orange
included infrastructure sharing in Poland (avoiding nearly
106,000 metric tons of CO2 emissions) and set-top box
refurbishment in France (4.8 million appliances).
An entrepreneurship fund launched by
Orange Ventures
— Orange Ventures is an international technology
investment fund with €350 million in assets under
management. It finances start-up ventures working in
innovative services (digital solutions, networks,
cybersecurity, FinTech, e-health, etc.), principally in
Europe, Africa, and the Middle East.
Orange Ventures encourages synergies between
start-ups and our operational entities to maximize our
agility to better serve our customers and to maximize our
positive impact in our operating countries. In 2021, a
Orange Ventures
Impact supports
start-ups that
help bring about
new responsible
economic models
with a positive
impact on the
environment,
inclusion or care.
€500 m
The value of the Group’s
inaugural sustainability bond
issuance
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seed fund was launched across 18 countries in Africa
and the Middle East to support 100 young start-ups by
2025. Orange Ventures also announced the launch of
Orange Ventures Impact in 2021, a new €30 million
investment vehicle for start-ups in France and elsewhere
in Europe that are at the seed stage or have proven their
growth potential. These start-ups must help bring about
new responsible economic models with a positive
impact on the environment, inclusion or care. Orange
Ventures invested in 18 new start-ups in 2021.
Employee saving schemes
promoting engagement, sustainability
and solidarity
— Orange works in close collaboration with trade
unions and employee share ownership associations to
ensure its employee saving schemes promote
engagement, sustainability and solidarity. That’s why
92% of the company’s employee saving and retirement
schemes include socially responsible investments (SRIs)
and 50% have been awarded a responsible label.
At the end of 2021, the value of these SRIs stood at
€800 million, accounting for almost 30% of the
diversified employee savings and retirement funds
(€2.7 billion). Among these SRIs were “Dynamis
Solidaire ISR” (with €163 million in assets) and “Epsens
Emploi Santé Solidarité” (with €38 million in assets),
funds where 5% to 10% of the securities are unlisted
and have a high social or environmental impact. By the
end of 2021—a year where €20 million was invested in
these solidarity funds and funding was provided to
almost 48 structures—nearly 30,000 employees had
contributed to social and solidarity projects.
Impact investing
Orange Nature
In December 2021, the Group
launched the Orange Nature carbon
fund in partnership with Mirova (a
Natixis Investment Managers
affiliate). This €50 million fund aims to
invest in various carbon sequestration
and offsetting projects, which range
from restoring and conserving natural
ecosystems such as mangroves to
supporting agroforestry initiatives.
The returns from the fund will be in
the form of carbon credits, which will
be used to offset a significant amount
of our residual CO2 emissions (see
pages 62-63 and 68-69).
€50 m
The investment capacity of the
Orange Nature carbon fund
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82
Analysis
What are sustainability
bonds?
In 2020, Orange issued a €500 million sustainability bond.
How do these bonds work and how do they differ from other
financial instruments?
A bond is a loan made from an investor to an issuer (a company, government, etc.) for a set
period of time in return for an agreed rate of interest. Sustainability bonds are debt instruments
where the proceeds are used exclusively to finance one or multiple projects that positively
contribute to sustainable development. The market for sustainability bonds is booming,
growing twentyfold between 2015 and 2021 to stand at €1,000 billion.
Sustainability bonds versus green bonds
A number of sustainable financial instruments exist in financial markets, including
“sustainability bonds” (to finance social and environmental projects), “social bonds” (to
finance innovative social projects) and “green bonds” (to finance environmentally friendly
projects). The proceeds are primarily used to finance projects that help bring about the
environmental transition. The European Union raised €12 billion in the world’s largest green
bond issuance to date.
Benefits of issuing sustainability bonds
Companies can use sustainability bond proceeds to finance projects in line with their purpose
and/or environmental and social commitments, thereby reconciling their financial and CSR
strategies. Orange invested around 40% of the proceeds from its first bond issuance in
September 2020 in digital and social inclusion projects and about 60% in projects relating to
energy efficiency and the circular economy. Sustainability bonds offer investors attractive
yields compared with traditional bonds.
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83
Sustainability bond issuances
totaled
$1,000 bn
in 2021, 20 times more than in 2015
Source: Refinitiv
2021 Integrated Annual Report
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85
Governance
f Key performance indicators
f A renewed governance team
f Executive Committee
f Compensation balanced equally between financial and
non-financial performance targets
f Risk management
f Materiality assessment, a tool to fuel strategic thinking
f Ensuring ethical compliance
Orange
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86
Governance
Key performance indicators
Orange’s governance team develops and implements
a long-term growth strategy combining strong operational
performance, high ethical standards and optimal risk
management.
The Board of Directors
in 2021*
12
meetings
97.2%
Average attendance rate
4.3 years
55 years
Average number of years of service
Average age
45% 55% 63%
Women Men
(excluding directors representing employees
and employee shareholders)
Proportion of independent directors
(excluding directors representing employees
and employee shareholders)
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87
Members of the
Board of Directors**
Chairman and Chief Executive Officer
Non-independent director
Independent directors
Directors representing the public sector
Stéphane Richard
Christel Heydemann
Alexandre Bompard
Anne-Gabrielle Heilbronner
Bernard Ramanantsoa
Frédéric Sanchez
Jean-Michel Severino
Stéphanie Besnier
Bpifrance Participations
(represented by Thierry Sommelet)
Anne Lange
Director representing employee shareholders
Laurence Dalboussière
Directors representing employees
Sébastien Crozier
Vincent Gimeno
Magali Vallée
Balanced and varied skills
on the Board**
Industry expertise
11/14
5/14
4/14
6/14
Telecoms/Technology/Digital/Media
Banking/Finance
Industry
Retail
International experience
10/14
7/14
3/14
8/14
Europe (including France)
Americas
Asia
Africa/Middle East
Corporate expertise
9/14
8/14
7/14
8/14
1/14
5/14
9/14
8/14
5/14
6/14
HR & employee support
M&A & investor relations
Finance/Audit/Accounting/Risk
Senior management
Production/Supply chain
Regulatory framework
Legal/Compliance/Governance/Ethics
CSR & sustainable development
(2/14: climate and the environment)
Sales/Marketing
Innovation & technology
* Data at 31.12.2021
** Data at 16.02.2022 (the date on the Board’s corporate
governance report)
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88
Governance
A renewed governance team
Orange has a renewed, robust and experienced governance
team to steer its strategy and achieve its long-term
performance goals. Our governance structure is balanced
at every level to ensure a diverse range of skills, broad
international experience and a more balanced gender
representation.
A renewed governance team
— On 28 January 2022, Orange’s Board of Directors appointed independent director
Christel Heydemann as the company’s new Chief Executive Officer with effect from
4 April 2022. Given the Board’s decision to separate the roles of Chair and Chief Executive
Officer, Stéphane Richard will continue to serve as a non-independent director and a
non-executive Chairman until the Shareholders’ Meeting on 19 May 2022. This decision was a
natural step to take when appointing a new CEO and renewing the governance team, and it
also reflected the wishes of various shareholders. Increasing numbers of large companies and
groups are splitting the roles of chair and CEO to ensure compliance with the principles of
separation of powers and independence.
Core and complementary expertise
on the Board of Directors
— The Board of Directors sets the Group’s major strategic, economic, social, financial and
technological policies and oversees their effective implementation by senior management. At the
end of 2021, the Board was made up of 15 members, each appointed for a four-year term of
office, bringing together a balanced range of expertise. Its structure accords with legal
requirements, including in relation to diversity and diverse gender representation. A member of
Orange’s Central Social and Economic Committee and a representative from its Worldwide
Works Council take part in Board meetings. The Board appointed its first lead director at the end
of 2016, a position that has been held by Bernard Ramanantsoa since 12 February 2020. As lead
director, Bernard Ramanantsoa exercises statutory powers and is entrusted with the duties and
powers set out in the Internal Guidelines.
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89
Work carried out by the Board in 2021
— The Board of Directors met 12 times in 2021, with an average attendance rate of 97.2%.
In addition to the standard monitoring of Group operations—including operational performance,
quarterly results, half-yearly and annual accounts, budget, risk factors and the compensation of
corporate officers—the Board, in close collaboration with senior management, actively
monitored the Group’s situation and the measures implemented in response to the Covid-19
pandemic throughout the year.
In the first half of 2021, the Board authorized the conclusion of an agreement with La
Banque des Territoires (Caisse des Dépôts), CNP Assurances and EDF Invest for the sale of
50% of the share capital and joint control of Orange Concessions. Additionally, it approved the
principle and terms of the contribution agreement between Orange and TOTEM France and
authorized Orange Spain to take part in the country’s 5G spectrum auction for the 700 MHz
band. In September 2021, the Board approved the proposed acquisition of the operator VOO in
Belgium. It also expressed its support for the Together 2021 share ownership plan open to
Orange employees.
The Board discussed the findings of the internal investigation into and the aftermath of the
outage that impacted emergency calls in France on 2 June 2021. It reviewed Orange Bank’s
development projects, in particular the “One Bank” IT project.
Three active specialized committees
— Three committees provide proposals, recommendations and opinions in their respective
areas of expertise to inform our major discussions and decisions. These committees are chaired
by independent directors and all include at least one director representing employees and one
representing the public sector.
In 2021, the Audit Committee worked on financial reporting (annual and half-yearly
accounts, quarterly results and the Group’s budget), the effectiveness of internal control
systems, risk management, the Code of Ethics and strategic development projects (including
interests in Africa and the Middle East). The Committee also looked at the Group’s debt
refinancing and liquidity investment policy.
The Governance and Corporate Social and Environmental Responsibility Committee
examines our main HR and CSR priorities, shaped by the stakeholder dialog process. It reviews
the Ethics Committee’s report on ethics-oriented initiatives on a yearly basis, as well as the
roll-out of our compliance programs. It puts forward objectives and defines the methods used
to calculate corporate officers’ annual variable compensation and directors’ compensation.
The Innovation and Technology Committee’s role is to assess the Group’s multi-year
investment programs and technological partnerships, as well as its strategy and performance
as regards innovation and technology. It held a meeting on the management of innovation and
technology within the Group. It examined our research priorities and analyzed our innovation
strategy and public cloud objectives.
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90
Governance
Executive Committee
The Executive Committee, acting under the authority of
senior management, steers the Group and coordinates
the implementation of its strategy. It monitors progress against
the targets set for operations, labor relations, technical matters
and the allocation of financial resources. It meets every week.
Members at 31.12.2021
1. Stéphane Richard
Chairman and Chief Executive Officer*
2. Ramon Fernandez
Delegate Chief Executive Officer and
Executive Vice-President Finance,
Performance and Development
3. Gervais Pellissier
Delegate Chief Executive Officer, Executive
Vice-President People & Group
Transformation and Chairman of Orange
Business Services**
4. Fabienne Dulac
Deputy Chief Executive Officer, CEO of
Orange France
5.
Mari-Noëlle Jégo-Laveissière
Deputy Chief Executive Officer, in charge of
Orange’s operational activities in Europe
(outside France)
6. Paul de Leusse
Deputy Chief Executive Officer, in charge of
mobile financial services and CEO of
Orange Bank
7. Jérôme Barré
Executive Vice-President, CEO of
Wholesale and International Networks
8. Hugues Foulon
Executive Vice-President of Strategy and
Cybersecurity activities
9. Nicolas Guérin
Executive Vice-President, Secretary-General
for the Group and Secretary of the Board of
Directors
10. Béatrice Mandine
Executive Vice-President Communication,
Brand and Engagement
11. Alioune Ndiaye
Executive Vice-President, CEO of Orange
Middle East and Africa
12. Helmut Reisinger
Executive Vice-President, CEO of Orange
Business Services***
13. Élizabeth Tchoungui
Executive Vice-President CSR, Diversity
and Philanthropy, Deputy Chair for the
Orange Foundation
14. Michaël Trabbia
Executive Vice-President Technology and
Innovation for the Group
Appointment of the new Chief Executive Officer
On 28 January 2022, Orange’s Board of Directors appointed Christel Heydemann as
the company’s new Chief Executive Officer with effect from 4 April 2022.
* Both Chairman and Chief Executive Officer until 4 April 2022,
then just Chairman until the Shareholders’ Meeting on
19 May 2022.
** Delegate Chief Executive Officer until 31 December 2021,
Deputy Chief Executive Officer People & Group
Transformation since 1 January 2022, Chairman of
Orange Business Services.
*** Until 17 January 2022.
Orange
1.
2.
4.
5.
9.
12.
6.
10.
91
3.
8.
11.
7.
13.
14 .
2021 Integrated Annual Report
92
Governance
Compensation balanced equally
between financial and
non-financial performance targets
The Orange compensation policy for senior executives not only
is a management tool that helps the company attract, motivate
and retain the talent it needs, but also meets the expectations
of shareholders and other stakeholders for transparency with
regard to performance and the fulfilment of CSR commitments.
A balanced and measured compensation policy
— Each year, the compensation of Orange’s corporate officers is assessed by the Board of
Directors on the basis of recommendations made by the Governance and Corporate Social and
Environmental Responsibility Committee. It is also subject to approval at the Shareholders’
Meeting as part of shareholders’ Say on Pay. We implement our Corporate Social Responsibility
(CSR) strategy by incorporating non-financial performance criteria into the compensation
packages of corporate officers and members of the Executive Committee. These criteria include
social indicators, such as the rate of women’s participation in management networks, levels of
access to training, the Group-wide Employee Barometer, and environmental indicators, including
the change in CO2 emissions.
The three pillars of executive compensation
— The compensation of Orange’s corporate officers is made up of three components.
Fixed compensation
— The fixed compensation of corporate officers is determined by the level and complexity
of their responsibilities, their experience and professional background, and market analysis for
comparable positions. In 2021, it remained unchanged from the previous year.
Variable compensation
— Variable compensation is intended to give corporate officers an incentive to fulfil the
annual performance targets set by the Board of Directors in line with the corporate strategy. The
variable component is split into levels of performance with a balanced weighting between
financial (50%) and non-financial (50%) criteria.
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93
2021 Compensation
Chairman and Chief Executive Officer
2021 Compensation
48.1% Fixed
11.1% Performance share plan
40.8% Annual variable
Delegate Chief Executive Officers
2021 Compensation
56.6% Fixed
10.6% Performance share plan
32.8% Annual variable
15%
15%
20%
17%
33%
30%
50%
20%
2021 Annual variable compensation
Financial criteria
Organic revenue growth
Organic cash flow from telecoms activities
EBITDAaL
Non-financial criteria
BtoC and BtoB service quality
Social performance - composite social performance indicator
Performance share plan
2021-2023 - LTIP
Performance indicators
Total shareholder return (TSR)
Organic cash flow from telecoms activities
Composite CSR indicator (reduction in CO2 emissions:
10%; rate of women’s participation in management
networks: 10%)
The variable component is determined using specific objectives and quantitative
performance measures, including non-financial indicators. The variable component represents
80% of the fixed compensation awarded to the Chairman and Chief Executive Officer, and can
increase to 100% where targets are exceeded, and a maximum of 60% of the fixed
compensation awarded to the Delegate Chief Executive Officers*.
Performance shares
— Corporate officers benefit from performance share grants under the Long-Term Incentive
Plan (LTIP) when they contribute to medium- and long-term value creation for the company in
line with the expectations of shareholders.
Performance is measured over a three-year period and is based on criteria that take into
account the direct contribution of executives to the long-term overall performance of the
company. The plan is open to members of the Executive Committee, as well as executive and
leadership networks.
* For more information, see the 2021 Universal Registration Document.
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94
Governance
Risk management
Our regular operations and Engage 2025 strategic plan
expose us to a number of risks* that could impact our
stakeholders, prevent us from achieving our targets, invoke
legal liability or undermine trust in our brand. The main goal
of our risk management system is to ensure we deliver on
our Purpose so that all our stakeholders continue to place
their trust in us.
— Orange has the structure, procedures and systems to detect risks and implement
targeted measures to prevent and mitigate them. The goal is to provide reasonable
assurance that we will meet our targets, deliver on our Purpose, comply with current laws
and regulations and disclose reliable financial and non-financial information.
Formed by senior management, the Risks Committee meets five times a year to steer
risk management within the Group. Its role is to monitor what we assess to be our main
risks, submit proposals to senior management on effectively managing these risks
according to the highest standards of internal control, and help senior management report
on risk management to the Audit Committee and the Board of Directors. Spearheaded by
the Group Audit, Control and Risk Management Department, the committee ensures internal
control and audit plans are consistent with objectives. Security, compliance, legal and CSR
teams contribute to the work carried out by the committee.
The joint committee of the Board of Directors convenes once a year to review risks and
the effectiveness of the risk management systems. Chaired by the lead director, this meeting
brings together all of the Board’s committees and the Group’s senior management team.
The operations and risk management framework is based on a cross-disciplinary and
collaborative structure following the three lines of defense (see model on page 57 of the
2021 Universal Registration Document). This is a stable, long-term structure while adapting
to changing global, geopolitical, economic, social and health contexts.
The effectiveness of this structure and the procedures involved is assessed on an
ongoing basis, in line with the company’s strategy and the nature of the risks identified, to
ensure it continues to serve us correctly.
* For more information about risks, see the Duty of Care plan and Section 2.1 (Risk factors) of the 2021 Universal
Registration Document.
The following pages focus on 13 themes that emerged from the 22 risks outlined in the 2021 Universal Registration Document.
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95
Technological risks
Innovation
Description and impact: drop in performance due to disruptive
technology, business models or regulations that could affect the
appeal or profitability of our products and services; infrastructure
obsolescence; and insufficient scale of infrastructure.
Examples of protection/prevention measures: Our Innovation
Department brings together our activities around strategic
innovation, as well as research and development. Our investment
policy supports research and innovation, including by contributing
to public and private programs, standard-setting bodies (e.g. the
GSMA) and supporting start-ups.
Major
business
disruption
Description and impact: loss in quality or disruption or
interruption of services provided, due to a technical malfunction,
operational failure, cyberattack, damage to our infrastructure or
the loss of licenses or usage rights, or following injunctions from
authorities.
Examples of protection/prevention measures: We monitor our
networks to react quickly should an incident occur and organize
the necessary maintenance operations. We ensure our solutions
are as resilient as possible right from the design phase, and
deploy the Business Continuity Management System (BCMS)
across our business units (fallback sites, preventive infrastructure
relocation, equipment redundancy, business resumption plans,
etc.).
Electro-
magnetic
waves/fields
Description and impact: potential effects of prolonged exposure
to electromagnetic waves, yet to be scientifically confirmed; public
perception of a risk to human health or biodiversity that could lead
to a reduction in the number of customers and their level of use, as
well as an increase in litigation; strengthening of legal safeguards
regarding mobile and internet use and related infrastructure; and
mistrust of digital technology, which hinders innovation.
Examples of protection/prevention measures: We ensure
compliance with current health regulations and follow the standards set
by the International Commission on Non-Ionizing Radiation Protection
(ICNIRP), particularly in relation to 5G. We support epidemiological
research programs (administered by the WHO, etc.) and transparent
information*, develop tools to measure wave intensity and raise
awareness among employees and customers of responsible digital use.
* https://radio-waves.orange.com/en/
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Governance
Economic risks
Investment
capacity
Description and impact: difficulty in making investments due to
insufficient access to finance and internal financing capabilities;
poor credit rating due to external factors; deterioration in financial
or non-financial indicators, depreciation of assets, against a
particularly tense geopolitical and macroeconomic backdrop; and
liquidity crises.
Examples of protection/prevention measures: The Group’s
Finance Department monitors these risks on an ongoing basis. We
have implemented a number of internal financial control processes
to safeguard transactions, as well as various hedging instruments
to manage our foreign exchange risk exposure. Additionally, we
obtain financing through diverse sources, primarily bond markets.
Overreliance
on a
supplier
Description and impact: deterioration in quality or performance
due to failure on the part of a key supplier; unfair contractual terms
imposed by a monopoly or niche supplier; supply chain disruption
or business interruption when products and services depend on
certain key services or equipment and international geopolitical
tensions arise; and revision of our strategy, in particular regarding
new technologies (5G, AI, etc.).
Examples of protection/prevention measures: Our purchasing
policies include a risk assessment for supplier selection and
monitoring. We ask our suppliers to choose recycled resources
over rare materials. Additionally, we regularly update our
procurement and diversification strategy to make our supply chain
more secure and frequently review our choice of suppliers in light
of market threats and opportunities.
Management
of skills
Description and impact: skills development in line with new
corporate demands; talent acquisition and retention in a tight labor
market; delayed launch or discontinuation of new businesses or
transformation initiatives; major business disruption; increased
reliance on suppliers; and decline in employee morale.
Examples of protection/prevention measures: Skills management
is a key focus of our strategic plan. We give our employees the
means to grow while supporting everyone throughout our
transformation. Additionally, we sign intergenerational agreements
to promote the integration of young people and the transmission of
knowledge.
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97
Geopolitical
and macro-
economic
instability
Description and impact: national or international crises or conflict
(in Mali, Ukraine, etc.) leading to a potential increase in economic
sanctions, damage to assets or harm to individuals as a result of
conflation with the French State; business disruption; breaches of
fundamental freedoms resulting from injunctions from local
authorities; humanitarian, health and migration crises; economic
crisis; tension on supply chains for key equipment and devices; and
decline in financial performance, impairment loss.
Examples of protection/prevention measures: We use monitoring
and alert systems to anticipate a number of eventualities including
national conflicts, international tensions and crises of all kinds.
These systems help us take appropriate steps to avoid or mitigate
the risks, protect people and assets and ensure business continuity,
as telecommunications is an essential service. Additionally, we
support local communities (e.g. Ukraine) through Orange
Foundation initiatives.
Business
model
and strategy
Description and impact: growing distrust of or aversion to new
technology; shift toward digital sobriety; increased competition,
including in core network activities; loss of contact with
customers; multiplication of legal and regulatory constraints;
lack of strategic resources; failed transformation/diversification;
loss of control of key infrastructure; and unfulfilled financial and
non-financial ambitions against a particularly tense geopolitical
and macroeconomic backdrop.
Examples of protection/prevention measures: Guided by our
purpose (which was incorporated into our bylaws in 2020), we
continue to pursue our Engage 2025 strategic plan, notably by
bolstering operations in new growth areas, such as mobile
financial services and cybersecurity. We take practical measures
such as entering into partnerships with key industry stakeholders
and investing in ventures that will further our strategy and
diversification priorities. Additionally, we invest heavily in our
networks to provide customers with enhanced connectivity.
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Governance
CSR risks
Compliance
with laws,
regulations or
contractual
obligations
Description and impact: litigation, administrative, civil or criminal
sanctions at local or international level in an increasingly litigious
economic environment where laws and regulations—particularly
those with an extraterritorial reach—are instrumentalized; and
additional costs to achieve compliance, in particular in areas where
the legal framework has not yet been determined or remains in flux
(IoT, AI, blockchain, etc.).
Examples of protection/prevention measures: The Group’s Legal
Department ensures all our operating regions and businesses are
covered in this respect, including the programs focused on key
issues in the present day or the future, covering GDPR, duty of care,
monitoring of international economic sanctions, international
anti-corruption laws and climate reporting (TCFD, etc.).
Environment/
climate change
mitigation
Description and impact: any event that could prevent Orange from
fulfilling its environmental commitments to combating climate change,
such as a significant increase in data use and volumes, failure to
achieve the Group’s energy transition target and failure of the Group’s
energy efficiency programs.
Examples of protection/prevention measures: The Engage 2025
strategic plan is driven by our ambition to set an environmental
benchmark, which is underpinned by a proactive policy to ensure our
own networks and resources achieve net zero carbon emissions by
2040. The Green ITN plan aims to improve the energy and
environmental efficiency of our networks and IT systems. We promote
infrastructure sharing with other operators, recycle equipment, have
developed an eco-design approach to product development and
promote responsible internet use among our customers.
Ethics and
governance
Orange
Description and impact: damage to the Group’s image and
reputation due to an ethical breach; inadequate governance to meet
the needs of the company and the expectations of its stakeholders;
discredit to the Group’s purpose; and sanctions against the company
and/or its employees.
Examples of protection/prevention measures: The Governance
and Corporate Social and Environmental Responsibility Committee
ensures employees adhere to our charters and policies and oversees
the related compliance programs. We regularly run employee training
and awareness programs, and the associated management and
control systems undergo regular internal and external assessments.
We take the expectations of stakeholders into account as part of our
decision-making processes and our holistic risk management
approach (ERM 360°), and incorporated our Purpose into our bylaws
to strengthen our commitment to advancing social issues.
99
Data and
information
integrity
and
confidentiality
Description and impact: events* that may compromise information
and data integrity, confidentiality or storage, threaten business
continuity or invade individuals’ privacy (cases of non-compliance
with legislation on protecting personal data or human rights and
fundamental freedoms).
Examples of protection/prevention measures:
Our comprehensive security system improves measures to protect
our infrastructure, products and services by implementing a
Security by Design approach and rolling out targeted mechanisms
to protect and supervise our networks and IT systems. Our Data
Protection Officer coordinates all privacy-related programs and
measures.
* Unauthorized access to data, cyberattacks, injunctions from authorities,
new technology not yet fully mastered, issues with a change management process,
failure of partners to protect externalized data, etc.
Health
and safety
of people
Description and impact: deterioration in the working conditions
of employees or partners in periods of crises and significant
internal transformation; and physical and mental harm to
employees, customers and partners as a result of activities in
high-risk areas or significant changes to ways of working, which
can pose psychosocial risks.
Examples of protection/prevention measures: We pursue a
proactive risk prevention policy, which has been allocated its own
budget, and have health and safety agreements in place with
employee representatives. The policy has led to a social contract
and pledge to be a digital and caring employer, a range of
occupational health initiatives and the implementation of our Duty
of Care plan. We are a member of the JAC, an association of
operators that seeks to audit, assess and develop the
implementation of major CSR principals and policies in the
manufacturing processes for the largest multinational telecoms
suppliers. We circulate safety information to employees and
customers on the responsible use of technology.
2021 Integrated Annual Report
100
Governance
Materiality assessment,
a tool to fuel strategic thinking
We regularly engage in dialogue with our internal and
external stakeholders to ensure we take account of their
experiences and expectations. These consultations fuel
our strategic thinking in line with our Purpose and
four commitments.
Fueling strategic thinking
— Orange’s structured approach to stakeholder dialogue is rooted in its corporate social
responsibility (CSR) strategy. This approach enables the Group to identify social and
environmental challenges and detect weak signals likely to shape the future. It also provides
the Group with a basis for regularly updating its materiality matrix. This materiality matrix
compares the importance of issues to external stakeholders with the impact on Orange’s
business and reputation as perceived by internal stakeholders.
Updating the matrix in 2021
— A total of 3,750 people have taken part in our consultations over the past five years.
Over 1,000 people across 16 countries in Europe, Africa and the Middle East have
contributed to the process through interviews or working groups—47% represented Orange
employees, 27% civil society (influencers, associations, the media and stakeholders in the
field), 16% business (suppliers, subcontractors, business customers, etc.) and 10% public
authorities (elected representatives and representatives of regional authorities). Furthermore,
we conducted an online consultation that received almost 2,700 responses. Orange
consolidated points from these consultations to develop its materiality matrix (see opposite).
In 2021, stakeholder dialogue focused on issues relating to the Group’s four commitments—
to the environment, digital equality, a society based on trust and a responsible economy—in
line with its Purpose (see pages 24-25) and the priorities of its Engage 2025 strategic (see
pages 14-15).
The updated materiality matrix from 2021 shows that, on the whole, the issues perceived
as having the largest impact on Orange’s business and reputation match up with the
priorities identified by stakeholders. Data protection and privacy protection were identified
as being important to stakeholders and potentially having a critical impact on the Group. The
Orange
101
The Group’s materiality matrix
2021
Digital equality
Environment
Responsible economy
Society built on trust
Level of importance to stakeholders
l
a
c
i
t
i
r
C
h
g
H
i
i
m
u
d
e
M
w
o
L
Inclusive services
Data protection
& privacy protection
Access
to essential services
through digital
solutions
Workplace
gender equality
Biodiversity & other
environmental considerations
Business ethics & compliance
Responsible
procurement
Support relating to employment
& for the local economy
Democracy & freedom of expression
Resource depletion
Energy & climate change
Solutions to reduce customers’
environmental footprint
New ways of working
Appeal among young people
Equal opportunities
Digital solidarity
Electromagnetic
waves
Responsible uses
Transparent services/
customer interactions
Low
Medium
High
Critical
Impact on Orange
perception of digital equality-related issues shows high expectations for inclusive services
and the adoption of new services. Environmental issues, including resource depletion,
generated particularly high levels of interest in Europe.
The rich and diverse nature of the data set enables Orange to produce geography- or
theme-specific matrixes to fuel its strategic thinking. Orange took part in a GSMA working
group to identify salient issues—with concrete consequences for individuals—facing the
telecoms sector. These include respect for privacy and freedom of expression, children’s
rights and the use of conflict minerals, which also emerged as top priorities in Orange’s
materiality assessment.
2021 Integrated Annual Report
102
Governance
Ensuring ethical compliance
Ethical conduct is a cornerstone of the Group’s history
and culture, a requirement that must be met in all business
activities, as well as a prerequisite for sustainable growth and
a digital world built on trust.
The Code of Ethics, a key component of our approach
— Orange’s approach to ethics is built around four commitments—respect, integrity,
quality and team spirit. Our Code of Ethics sets out guidelines for our stakeholders and
governs the professional conduct of our employees in line with the Universal Declaration of
Human Rights, the International Labour Organization (ILO), the Organisation for Economic
Co-operation and Development (OECD), our corporate social responsibility commitments and
our Purpose.
Hello Ethics, a new whistleblowing platform
— The Group launched a new, secure whistleblowing platform called Hello Ethics in 2021.
Accessible to both employees and external stakeholders, this user-friendly platform enables
designated people to handle incoming reports of corruption, fraud, breaches in ethical
compliance or concerns relating to the environment, fundamental and human rights, and
health and safety. Users submitting their concerns via Hello Ethics help us comply with laws
and regulations and fulfil our ethical commitments. This process safeguards the long-term
success of our operations, as it reduces the risk of reputational and financial losses.
Furthermore, an ethics chatbot was introduced in 2021 to provide our employees with quick
answers to questions relating to ethics and compliance.
Orange
103
4
9
commitments—respect, integrity,
quality and team spirit—underpinning
Orange’s Code of Ethics.
Ethics and Compliance Days
organized since 2013
Anti-corruption assessments, checks, training
and prevention
— Orange regularly ramps up its anti-corruption practices to bring them in line with the
changing legal landscape. Honoring our commitment to responsibility and integrity, and
promoted by executives and managers, this involves assessing risks including corruption and
influence peddling each year. Third-party evaluations, internal checks, audits and reporting
help enhance risk control measures. Furthermore, our anti-corruption training tools and
resources—videos, independent learning content (e.g., e-learning modules and quizzes) and
teaching materials used for in-person sessions—have been extensively updated since 2018.
In 2021, new training pathways covering various themes were rolled out and a catalog of
internal and external training courses was shared with all our entities.
Ethics and Compliance Day
— Orange’s annual Ethics and Compliance Day raises awareness among all employees
and encourages them to remain actively involved in the Group’s prevention programs across
all of our operating regions. Held in November 2021, the ninth annual Ethics and Compliance
Day featured conferences and debates led by executives and experts at the Orange head
office, who focused on day-to-day business ethics and secure international expansion. These
interactives sessions built around questions from participants were live-streamed on the
Orange Plazza social network and the Orange News mobile app. The way in which
subsidiaries and departments across the Group mark the day depends on the challenges that
are most relevant to them. Examples of some of the varied, creative activities that take place
include webinars, quizzes, debates and treasure hunts.
2021 Integrated Annual Report
104
105
Results
f Key performance indicators
f Financial results
f Non-financial results
Orange
2021 Integrated Annual Report
106
Results
Key performance indicators
Financial results
2021 targets fully achieved
Strong growth expected in 2022
EBITDAaL
eCAPEX
Organic cash flow (telecoms)
Net debt/EBITDAaL (telecoms)
Dividend
2021
€12.6 bn
€7.7 bn
€2.4 bn
1.91×
*
€0.70
2022
Increase
of between 2.5% and 3%
≤ €7.4 bn
≥ €2.9 bn
Around 2x in the medium term
€0.70
Revenues
€42.5 bn
up 0.8% on 2020
41.1%
24.6%
17.3%
14.6%
2.4%
France
Europe
Enterprises
Africa and the Middle East
International carriers & shared
services
* See page 109.
Orange
107
Non-financial results
Diversity
Aligning female representation in senior
management with the proportion of women
in the Group
Percentage of women in management
networks
Objective: 35.0% in 2025
31.6% in 2021
Digital inclusion
Enhancing connectivity and extending digital inclusion
FTTH connectable homes Orange Digital Centers
Objective: 69.0 m in 2023
56.5 m in 2021
Objective: 26 in 2025
9 in 2021
Environment
Reducing our emissions of CO2 equivalent and expanding our circular economy
to achieve net zero carbon emissions by 2040
Reduction in CO2 emissions
on 2015 (Scopes 1 and 2)
Percentage of electricity from
renewable sources
Objective: 30.0% in 2025
12.1% in 2021
Objective: 50.0% in 2025
36.3% in 2021
Data at 31.12.2021
2021 Integrated Annual Report
108
Results
Financial
results
The Group’s results reflect a solid performance in 2021,
delivering on its commitments and confirming all its
targets for 2023, including an organic cash flow of
between €3.5 billion and €4 billion. Furthermore, our
excellent commercial performance contributed to us
achieving our 2021 targets despite facing considerable
challenges.
Moderate rise in revenue
— Orange Group revenues totaled €42.5 billion in 2021, up 0.8%* on 2020. This growth
was primarily driven by Africa and the Middle East (with revenues up 10.6% year on year),
followed by Europe excluding Spain (up 2.6%) and Enterprises (up 0.5%). The 1.6% decline
in revenues from France was due to lower levels of co-financing in the fiber network
compared with 2020. Retail services continued to grow through convergence offers
(up 1.9% year on year) in France and the rest of Europe excluding Spain, as well as
standalone mobile services (up 4.2%) in Africa and the Middle East, whereas standalone
fixed services contracted 2.8%. Wholesale revenues declined 6.8% due to co-financing
in France, while IT&IS services and equipment sales continued to grow.
EBITDAaL and eCapex**
— Group EBITDAaL amounted to €12.6 billion in 2021, down 0.5% on the previous year.
This result includes a €172 million expense incurred through the 2021 employee share
ownership plan that covered approximately 1% of the company’s share capital (and
primarily applied to France and Enterprises). EBITDAaL from telecoms activities also fell
0.8% to €12.7 billion in 2021.
Group eCAPEX totaled €7.7 billion, up 7.8%, in line with the target set following a high
level of co-financing and a slowdown in investment due to the pandemic in 2020. In the
second half of 2021, eCAPEX began to decline.
Orange
109
Operating income
— The Group’s net income fell from €5,537 million in 2020 to €2,521 million in 2021, on a
comparable basis, primarily due to the recognition of €3.7 billion in impairment of goodwill in
Spain in the first half of the year.
Operational efficiency program Scale Up
— In 2020, Orange launched the Scale Up operational efficiency program to reduce
costs. The program aims to achieve net savings of €1 billion by 2023 from within a defined
scope of €13.8 billion at end-2019, made up of indirect costs. By end-2021, almost
€300 million had already been saved. We intend to achieve aggregate net savings of around
€600 million by the end of 2022.
Changes in the asset portfolio
— On 3 November 2021, Orange sold a 50% equity interest in Orange Concessions to
a consortium comprising La Banque des Territoires, CNP Assurances and EDF Invest based
on an enterprise value of €2.7 billion, losing sole control of the entity and its subsidiaries.
On 24 December 2021, Orange Belgium signed an agreement to acquire a 75% stake
minus one share in VOO SA based on an enterprise value of €1.8 billion. This acquisition,
which is in line with the Group’s convergence strategy, is expected to generate significant
synergies related to the transfer of VOO’s MVNO business to Orange Belgium’s network.
Subject to European Commission approval, the deal is expected to close in 2022.
Organic cash flow
— Cash flow reached €2.4 billion in 2021 (compared with €2.5 billion in 2020), meeting
our target of over €2.2 billion.
Dividend
— A dividend payment of €0.70 per share for the 2021 financial year will be put to a vote
at the Shareholders’ Meeting on 19 May 2022. Taking into account the €0.30 interim
dividend paid on 15 December 2021, the remaining dividend of €0.40 per share will be paid
in cash on 9 June 2022. The ex-dividend date is 7 June 2022.
* Unless otherwise stated, changes are on a comparable basis.
** See the 2021 Universal Registration Document for the definition of EDITDAaL and eCapex.
2021 Integrated Annual Report
110
Results
Gross annual return on the Orange share
compared with the average gross annual return
on CAC 40 company shares
Gross annual
return on the Orange
share
Average gross
annual return on CAC 40
company shares
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
5.6%
5.0%
3.9%
4.2 %
4.5%
5.0%
7.5%
7.5%
5.3%
6.2%
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
estimation
Source: Bloomberg, 31.03.2022
Total shareholder return*
Orange TSR
Stoxx Europe 600 Telecommunications TSR
CAC 40 TSR
200
150
100
50
1 January
2017
1 January
2018
1 January
2019
1 January
2020
1 January
2021
31 December
2021
* Base 100: 1 January 2017
Total Shareholder Return is the sum of all dividends received plus/minus the change in stock price, expressed as
a percentage of the initial purchase price.
Orange
Key figures
Data at 31 December
In millions of euros
2021
2020
comparable
basis
2020
Change
historical comparable
basis
basis
Revenues
France
Europe
Africa & Middle East
Enterprise
International carriers & shared services
Intra-Group eliminations
EBITDAaL*
o/w telecom activities
as % of revenues
France
Europe
Africa & Middle East
Enterprise
International carriers & shared services
o/w mobile financial services
Operating income
o/w telecom activities
o/w mobile financial services
42,522
18,092
10,579
6,381
7,757
1,515
(1,802)
12,566
12,696
29.9%
6,867
2,830
2,265
970
(237)
(131)
2,521
2,702
(182)
Consolidated net income
778
Net income attributable to owners of the parent company 233
eCAPEX
o/w telecom activities
as % of revenues
o/w mobile financial services
EBITDAaL - eCAPEX
Organic cash flow (telecom activities)
7,660
7,636
18.0%
24
4,906
2,401
42,201
18,394
10,665
5,770
7,718
1,454
(1,801)
12,635
12,799
30.3%
7,073
2,914
1,939
1,058
(185)
(165)
5,537
5,736
(200)
7,103
7,070
16.8%
33
5,532
42,270
18,461
10,580
5,834
7,807
1,450
(1,861)
12,680
12,839
30.4%
7,163
2,932
1,964
1,023
(244)
(160)
5,521
5,715
(195)
5,055
4,822
7,132
7,102
16.8%
30
5,548
2,494
0.8%
(1.6)%
(0.8)%
10.6%
0.5%
4.2%
(0.5)%
(0.8)%
(0.5) pts
(2.9)%
(2.9)%
16.8%
(8.3)%
(27.9)%
20.7%
(54.5)%
(52.9)%
9.3%
7.8%
8.0%
1.2 pts
(26.8)%
(11.3)%
111
Change
historical
basis
0.6%
(2.0)%
(0.0)%
9.4%
(0.6)%
4.5%
(0.9)%
(1.1)%
(0.5) pts
(4.1)%
(3.5)%
15.3%
(5.2)%
3.0%
18.3%
(54.3)%
(52.7)%
7.0%
(84.6)%
(95.2)%
7.4%
7.5%
1.2 pts
(20.1)%
(11.6)%
(3.7)%
31
31
December December
2020
2021
Net financial debt*
Ratio of net financial debt / EBITDAaL from telecom activities**
24,269
1.91
23,489
1.83
* Net financial debt as defined and used by Orange does not include mobile financial service activities for which this
concept is not relevant.
** The ratio of net financial debt to EBITDAaL for telecom activities is calculated as the ratio of the Group’s net financial
debt compared to EBITDAaL for telecom activities calculated over the previous 12 months.
2021 Integrated Annual Report
112
Results
Non-financial
results
We assess and monitor both our financial and non-financial
performance to ensure we uphold our societal commitment
for future generations.
Human rights
— Orange renewed its support for the United Nations Global Compact for the 21st year in
a row, pledging to protect and promote fundamental human rights. We protect freedom of
expression and privacy through our involvement in the Global Network Initiative, regularly
discussing best practice with fellow members to meet governmental demands in the
telecommunications sector. Orange now provides an e-learning module in over 90% of its
operating countries to share its key workplace human rights principles with employees.
Data protection
— In 2021, data protection officers were appointed in all our subsidiaries in Europe as
well as in Orange Business Services. To ensure any data created, processed or stored by the
Group was appropriately protected, over 1,000 manual technical and non-technical
assessments and more than 100,000 automated assessments were carried out in 2021.
Nearly 26,000 employees completed a total of 200,000 hours of cybersecurity training.
Employees
— As of 31 December 2021, Orange employed 139,698 people—136,928 on unlimited
contracts and 2,770 on temporary contracts. In 2021, 9,200 people were hired on unlimited
contracts—2,195 of whom in France and over 80% in “innovation and technology” and
“customer” roles—and 3,124 people were brought in on work-study contracts. Orange
placed 78th out of 850 European companies in the Financial Times Diversity Leaders 2022
ranking published in November 2021, coming second in the telecoms sector. At end-2021,
women filled 31.5% of executive roles within the top 10% of the Group’s leadership
positions. Since 2018, almost 19,000 employees in France have received workplace equality
certificates after completing an online training course. The equivalent international course,
launched in multiple languages in April 2021, has been completed by almost
10,000 employees worldwide.
Orange
113
Digital inclusion
— In addition to our ambition of increasing regional digital coverage, we help people
access digital technology and teach them how to use it. In 2021, the Group had nine Orange
Digital Centers—all in Africa and the Middle East—which enabled young people to acquire
new digital skills, promoting entrepreneurship and enhancing their job prospects. The Sanza
range of affordable smartphones (costing around USD 20 each) is available in 16 countries in
Africa and the Middle East. We market reconditioned smartphones in Europe. In 2020, we
launched “Tarifa Social”, the first convergence offering in Spain, adapted to the financial
resources and needs of low-income households, who were offered faster speeds—of up to
500 Mb/s—in 2021. Launched in 2020 in France, our digital accessibility e-learning course
had been completed by 1,600 employees by the end of 2021.
Environment
— We have set the ambitious goal of achieving net zero carbon emissions by 2040, as well
as an intermediary target of lowering our CO2 emissions (across scopes 1 and 2) by 30% by
2025 compared with 2015 levels, after having achieved a 12.1% reduction between 2015 and
2021. Our network and IT systems account for 82% of the Group’s overall energy
consumption and 87% of its CO2 emissions. The action plans deployed in 2021 helped limit
the rise in the Group’s scope 1 and 2 energy consumption to 2.3% compared with 2020. We
collected 20.4% of unwanted mobiles in Europe as part of our circular economy program.
2021 Integrated Annual Report
114
Results
Employee
distribution
Employees by business line
Support
Customer
Support functions
Innovation and Technology
Other
2021
19.7%
31.8%
11.1%
35.0%
2.4%
2020
19.5%
32.8%
11.1%
33.3%
3.3%
2019
19.6%
33.0%
12.1%
32.3%
3.0%
Group total(1)
100.0%
100.0%
100.0%
Employees by geographical area
France
Spain
Poland
Other European countries
Africa
Asia-Pacific
Americas
Group total(1)
Item reviewed by KPMG: reasonable assurance.
2021
56.0%
4.1%
7.5%
12.2%
13.8%
4.6%
1.8%
2020
57.9%
4.3%
8.0%
9.6%
13.3%
4.5%
2.4%
2019
59.4%
4.1%
8.5%
9.3%
12.2%
4.2%
2.3%
100.0%
100.0%
100.0%
Gender equality in the workplace
% of women in the active workforce
% of women in managerial positions(2)
% of women in management networks(3)
2021
2020
35.9%
31.3%
31.6%
36.0%
31.3%
31.1%
2019
36.0%
30.9%
31.1%
(1) The Group’s reporting scope includes all fully consolidated entities.
(2) “Managerial positions” refers to senior management, i.e., levels E, F and G in the French collective agreement on telecommunications (CCNT).
Entities outside France can refer to an explanatory document when determining the most appropriate level for each employee.
(3) Executive and leadership networks, with 1,330 people holding positions of great responsibility across the Group at end-2021.
Item reviewed by KPMG: reasonable assurance.
Orange
115
Toward a lower impact on the environment
and the climate
Environmental performance
(energy)
Units
2021
2020
comparable basis
2020
historical basis
France(1)
Rest of
the world
Group
Group
Group
Facilities presenting a risk
Fuel tanks
units
1,161
475
1,636
3,606
3,606
Energy consumption – Scope 1
m3
Fuel oil (all buildings, all uses)
m3
Gas
Coal
metric tons
liters
Fuel
− Gasoline-LPG for company vehicles liters
liters
− Diesel for company vehicles
GWh
Total energy Scope 1
487
8,738,286
N/A
16,806,350
6,276,312
10,530,038
377
15
67,325
72,163
66,838
65,930
3,461,782 12,200,067 12,927,319 12,927,319
13
8,941,116 25,747,466 24,656,085 24,656,085
4,112,106 10,388,417
7,692,908
4,829,010 15,359,049 16,963,178 16,963,178
1,139
7,692,908
687
310
682
13
15
CO2 em. from fuel oil, gas & coal
CO2 emissions from vehicles
CO2 emissions from
Scope 1 (energy only)
CO2 emissions from
greenhouse gases (refrigerants)
CO2 emissions from Scope 1
Electricity consumption – Scope 2 GWh
of which green energy
GWh
− Green energy supply with guarantee
metric tons CO2
metric tons CO2
metric tons CO2
51,470
42,658
188,293
22,366
239,762
65,024
253,937
63,238
211,771
63,238
94,128
210,658
304,786
317,175
275,009
3,057
metric tons CO2 eq
metric tons CO2 eq 97,185
2,227
67
16,180
19,237
7,517
7,517
226,838
324,023
324,692
282,526
2,239
676
4,467
743
4,358
643
4,329
624
of origin certificate
− Green energy supply from ESCO
contracts, solar farms or internal
solar production
− Green energy supply from PPAs
GWh
GWh
GWh
-
303
303
488
488
-
67
161
213
161
280
155
136
CO2 emissions from Scope 2
Total energy consumption
(Scope 1 and Scope 2)
metric tons CO2
115,707
862,935
978,642
994,582
990,554
GWh
2,604
2,550
5,154
5,040
5,468
Total CO2 em. (Scope 1 and Scope 2) metric tons CO2 eq
Energy consumption – Scope 3(2)
212,891
1,089,773
1,302,665
1,319,274
1,273,080
Flight distance for business trips
Train distance for business trips
km
km
21,361,279
21,731,643
635,815 21,997,094 61,782,497 61,782,497
1,707,853 23,439,496 23,425,117 23,425,117
CO2 emissions from Scope 3
Total CO2 em. (Scopes 1 + 2 + 3)
metric tons CO2
metric tons CO2 eq
5,143
1,332
6,475
14,729
14,729
218,034
1,091,105
1,309,140
1,334,004
1,287,809
N/A: not applicable.
Since the figures are rounded up, the Group figures may not be the sum of the “France” and “Rest of the World” figures.
The figures of certain countries in the Middle East and Africa are based on estimates and may be revised.
The 2020 comparable basis includes the inclusion of 3 new existing countries in the reporting (Burkina Faso, Liberia, Sierra Leone) and a change in methodology for
converting fuel from technical operations from Scope 1 to GWh; this change in methodology does not affect the calculation of CO2 emissions (see the environmental
methodological note on pages 318-319 of the 2021 Universal Registration Document).
(1) The France scope covers Orange France, the Group’s headquarters, Orange Marine and the entities of Orange Business Services operating in the country.
(2) Only emissions related to business travel are presented in this table. Scope 3 emissions for all 15 GHG protocol items for 2021 are the subject of ongoing work.
See below.
Item reviewed by KPMG: reasonable assurance.
2021 Integrated Annual Report
Network coverage
Development of digital solutions
(BtoB)
Research and innovation
investment
Financial services platforms
P. 4-5; P. 7-11; P. 14-19; P. 23; P. 25; P. 30-33;
P. 36-40; P. 46-47; P. 52-53
P. 5-6; P. 8-10; P. 14-19; P. 23; P. 34-39;
P. 46-52; P. 54-57
P. 14-19; P. 23-25; P. 38-39; P. 55
P. 9; P. 10; P. 14-19; P. 23-25; P. 48-51; P. 111
116
How Orange meets
the UN Sustainable
Development Goals
Build resilient
infrastructure,
promote inclusive
and sustainable
industrialization and
foster innovation
Reduce inequality
within and among
countries
Ensure sustainable
consumption and
production patterns
Take urgent action to
combat climate
change and its
impacts
Social offers
Affordable products
Autonomy offers
Multi-service offers
User support
Training for digital careers
Community support
Workplace diversity and
equality
Second-hand equipment
Eco-design approach to
equipment
Product collection and repair
Waste recovery
Transparency and reporting
CO2 emissions
Energy-efficient infrastructure
Renewable energy use
Supporting our customers on
their low-carbon journey
Promote peaceful
and inclusive
societies
Freedom of expression
Personal data protection
Cybersecurity
Responsible technological
developments
Ethics & compliance
Efforts to combat workplace
discrimination
Responsible purchasing
Support for SMEs/start-ups
Partnerships (technological
cooperation, industrial
partnerships, PPPs)
Employee outreach
Strengthen the
means of
implementation and
revitalize the global
partnership for
sustainable
development
Orange
P. 14-15; P. 24; P. 78-79; P. 113
P. 14-19; P. 23-25; P. 50-51; P. 78-79; P. 113
P. 78-79
P. 14-19; P. 46-47; P. 52-53; P. 78-79
P. 11; P. 14-19; P. 36-39; P. 46-47;
P. 74-79; P. 82; P. 113
P. 14-19; P. 46-47; P. 74-75
P. 9; P. 16-19; P. 23; P. 74-75; P. 78-79
P. 9; P. 14-19; P. 23; P. 76-77; P. 112; P. 114
P. 7; P. 14-19; P. 23; P. 66-67
P. 7; P. 14-19; P. 23; P. 63; P. 66-67
P. 7; P. 14-19; P. 23; P. 66-67; P. 80; P. 113
P. 14-19; P. 23; P. 47; P. 67
P. 2; P. 10-11; P. 16-25; P. 28-29; P. 44-45;
P. 50-51; P. 60-62; P. 72-75; P. 86-87;
P. 94-101; P. 106-115
P. 7; P. 9; P. 11; P. 14-19; P. 23-25; P. 33;
P. 36-39; P. 53; P. 62-63; P. 68; P. 80-82;
P. 113; P. 115
P. 5-7; P. 14-19; P. 23; P. 25; P. 36-40;
P. 62-63; P. 113; P. 115
P. 14-19; P. 23; P. 25; P. 37; P. 64-65;
P. 68; P. 115
P. 7; P. 14-19; P. 23; P. 36-39; P. 62-63
P. 22-25; P. 34-35; P. 101; P. 112
P. 9; P. 16-19; P. 23; P. 34-35; P. 100;
P. 112
P. 6; P. 8-10; P. 14-19; P. 23; P. 34-35;
P. 47-49; P. 54-57; P. 112
P. 14-19; P. 23; P. 30-31; P. 34-39;
P. 76-79
P. 14-19; P. 23; P. 102-103
P. 14-19; P. 23; P. 76-77
P. 16-19; P. 23; P. 25; P. 66-67
P. 16-19; P. 23; P. 36-39; P. 46-47;
P. 80-81
P. 7; P. 16-19; P. 23; P. 30-31; P. 34-39;
P. 46-49; P. 55-57; P. 62-63; P. 65; P. 76;
P. 81; P. 89
P. 9; P. 16-19; P. 23; P. 74-75; P. 80-81
117
Useful links and
contacts
Useful linksens
Integrated Annual Report
Corporate website
Orange Business Services
Universal Registration Document
Corporate Social Responsibility
Working at Orange
Enovacom
Orange Foundation
Bien vivre le digital
Follow us on LinkedIn
Follow us on Twitter
Follow us on Instagram
Follow us on TikTok
Contacts
Investors and analysts
Individual shareholders
rai2021.orange.com/en
orange.com/en
orange-business.com/en
orange.com/en/regulated-information
https://gallery.orange.com/rse#lang=en&v=root
https://orange.jobs/site/en-home/
enovacom.com
fondationorange.com/en
bienvivreledigital.orange.fr (French only)
linkedin.com/company/orange
@orange
@presseorange
@orangeRSE
instagram.com/orange
tiktok.com/@orange
investor.relations@orange.com
orange@relations-actionnaires.com
https://www.orange.com/en/shareholder-information
2021 Integrated Annual Report
118
Orange – Communication, Brand and Engagement Department
111, quai du Président-Roosevelt – 92130 Issy-les-Moulineaux, France
+33 (0)1 44 44 22 22
A French société anonyme with a share capital of €10,640,226,396 –
Registration number 380 129 866 (Nanterre Trade and Companies Register)
Copywriting and graphic design
Pelham Media & Studio L’Éclaireur
Credits
© angelabower.fr, Getty Images, Nicolas Gouhier, Orange brand site, Unsplash
All rights reserved
Translation
Alto International
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CLIMATE
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Écoconception pour le recyclage
2
3
4
5
6
7
1
Designed to be recycled
This scale can be used to compare the recylability of products within the same category,
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Don’t forget the environment—this document can be reused or recycled!
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Orange
Orange
111, quai du Président-Roosevelt
92130 Issy-les-Moulineaux
+33 (0)1 44 44 22 22
orange.com