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ESG Report

Bezeq Group 2024

Main Points

Social and economic resilience, even in times of crisis

"The past year presented the State of Israel with profound national challenges. Bezeq Group - including Bezeq, Pelephone, yes, and Bezeq International TECH stood at the forefront of efforts to preserve national and communication resilience. During the war, our networks withstood exceptional demand, demonstrating their strength, reliability, and stability. Since October 7th, alongside our routine operations and driven by a deep sense of national responsibility, we have invested over NIS 2 billion in infrastructure exceeding the investment made prior to the war.

Bezeq is not only a business group it is an integral part of Israel's national fabric. Israel's geographical location, combined with our infrastructure investments, positions the Group as a bridge between East and West - contributing to Israel's economic resilience and global standing.

In the reporting year, Bezeq Group recorded annual revenues of NIS 9 billion, with significant growth in the core revenues of Bezeq and Pelephone. Concurrently, Bezeq and Pelephone upgraded over 50% of their customer base to advanced infrastructure and technologies, with over 800 thousand fiber internet customers and over 1.2 million 5G customers. The strategic and business focus on transitioning to advanced infrastructure was also reflected in the continued development of cloud services at Bezeq International TECH and the strong leadership of yes in the internet-based television market, with 473 thousand subscribers.

The flagship project of nationwide fiber-optic deployment has advanced Israel's economy, in both the business and private sectors, elevating the country into the global top ten for internet speeds. Bezeq is nearing completion of this project, with 2.8 million households already connected.

Alongside our investments in core infrastructure, we never forget those affected since October 7th, and we are deeply committed to supporting individuals, families, and communities. We stand beside our valued employees serving in the reserve forces, work to restore infrastructure in affected areas, and provide ongoing support to bereaved families. These efforts are an integral part of our values and will continue to guide us moving forward.

We hope for the safe return of our hostages and soldiers, and for calmer and better days ahead."

Tomer Raved, Chairman of Bezeq Group

Bezeq Group's ESG Goals

Net Zero
Carbon Emissions
by 2050

At least 20% employees
from diverse populations
by 2030

At least 50% women
in management positions
by 2030

At least 40% women
on the Board of Directors
by 2030

Connecting Israel

Bezeq provides widespread access to high-speed internet through the deployment of fiber optic technology, reaching 2.57 million households, with plans to expand deployment to 2.9 million households by the end of 2025.

yes maintains its position as a market leader in internet-based television, with over 467 thousand IP subscribers.

Pelephone, the first company to operate an independent 5G network in Israel, continues to lead the country's 5G sector with over 1.2 million 5G customers, and the continuation of nationwide deployment.

Bezeq International TECH enhances Israel's global connectivity through the JONAH submarine cable, which carries 35% of the nation's internet traffic and provides infrastructure that enables global companies to operate in Israel and supports Israeli companies in managing international relations.

*All data is accurate as of the end of the 2024 reporting year.

In 2024, Bezeq established the Connected Fund, supporting IDF soldiers injured during their service and helping to strengthen their personal resilience and reintegration into civilian life.

800 Bezeq Group employees who served in the reserves received recognition grants amounting to NIS 4 million.

Bezeq connected over 1,000 shelters in northern Israel to free Wi-Fi.

The purple beret family: yes and Pelephone adopted the Givati Brigade at the beginning of the war.

The documentary film #NOVA, which includes over 200 testimonies of survivors of the Nova massacre, became a symbol of international advocacy and was screened before senior diplomats at the United Nations in March 2024.

#NOVA is Israel's most important weapon

Bezeq International TECH adopted evacuated families housed at the Prima Hotel in Petah Tikva.

Once a month, Bezeq International TECH held emotional gatherings with the families of victims from October 7th.

And we never forget, not for a moment, the hostages still held in Gaza

Participation in ESG Frameworks

Net zero: Joining the Zero Hour initiative of the Ministry of Environmental Protection

Maala Platinum plus (AA) rating for ESG in 2025

Joining the Women's Empowerment Principals (WEPs) initiative of the UN

Membership in the Valuable 500 initiative for inclusion of people with disabilities

Partnership in Businesses Team Up for the Community in an Emergency

Recycle Icon

Reducing waste and encouraging recycling

Weight of upcycled items at the Bezeq International TECH facility (tons)

Fleet electrification

Rate of electric and hybrid cars in the Group

65% electric & hybrid vehicles in 2024

Reducing water consumption

Water consumption at Bezeq Group (cube)

Bezeq Energy

Bezeq introduced its electricity supply service, enabling consumers to pay less, with one of the most attractive offers on the market with a dedicated app for smart management, helping users to reduce their electricity consumption.

Gender equality

Rate of women in management positions in the Group companies in 2024

0%
0%
0%
0%

39% of management positions at Bezeq Group are held by women

We continue to stride towards the goal - at least 50% women in management positions by 2030

Diversity Icon

Supporting diversity and inclusion

Continuous increase in the rate of employees from diverse populations* in the Group:

25% of new employees at Bezeq Group in 2024

come from diverse population groups

* Under-represented populations in the labor market: people from Arab and ultra-Orthodox communities, Israelis of Ethiopian origin, and people with disabilities

Safety Icon

Strict adherence to employee
health and safety standards

Significant increase in onsite inspections -
more than 2.5 times compared with last year

Cybersecurity Icon

Reinforcing digital
responsibility

Cyber Plus protection of Be routers:

  • Protects against phishing threats, online impersonation, and DoS/DDoS cyberattacks
  • Blocks password cracking attempts
  • Prevents hostile takeover of devices connected to the network
  • Pelephone Cyber: protection against cyber attacks during cellular browsing
  • Pelephone Cyber Total: protection when browsing over Wi-Fi
  • Harmony by Checkpoint: cyber protection for cellular and Wi-Fi browsing, with alerts for malicious apps

Cyber Defender:

  • Smart SIEM & SOC solution offering a 24/7 response
  • Full monitoring and control through an innovative portal that provides real-time information about organizational activity.

Excellence in service

This year as well, Bezeq customers awarded the Company top scores in all service categories:

199 call center

9.1 2022
9 2023
9.2 2024

Tech call center

8.9 2022
8.8 2023
9.1 2024

Tech service

9.5 2022
9.3 2023
9.5 2024

Sales call center

9.4 2022
9.3 2023
9.6 2024
Team Icon

In 2024, yes and Pelephone recorded an increase

in customer recommendation rates compared with the previous year:

2023
0%
0%
2024
0%
0%

According to the 2024 Public Inquiries Reports published by the Ministry of Communications, yes ranked first in the cable and satellite broadcasting sector, while Pelephone ranked first in the telecom sector.

Scales of Justice Icon

Ethics and
corporate governance

  • Revised Human Rights Policy of Bezeq Group
  • Delivered 600 hours of ethics training to 90% of Bezeq employees
  • 98% of all Group employees completed the Code of Ethics tutorial
  • 25 board meetings were held with an average participation rate of 98.3% and 41 meetings were held in four active board committees
Community Icon

Community Impact

  • Bezeq's community activities:
  • Provided subsidized communication services to over 630 nonprofit organizations with an aggregate value of NIS 5 million.
  • Adopted the Chaim Herzog High School for Science and Arts in Holon, promoting technological and scientific education and mentoring at-risk youth through enrichment and guidance programs.
  • Expansion of Good Deeds Day to Good Deeds Month: more than 300 employees contributed volunteer days over an entire month.
  • yes and Pelephone collaborate for the community:
  • Adoption of the Givati Brigade at the beginning of the war.
  • More than 600 Company employees participated in Corporate Responsibility Week with the theme "Resilience and Renewal".
  • Employees contributed over 2,300 volunteer hours in 2024.
  • As part of the Docu Young project, now in its second year, 180 at-risk youth living in six boarding schools created six documentaries, guided by professional directors and creators, and supported by dozens of yes volunteers.
  • Bezeq International TECH connects technology, people, and community
  • Adoption of the Shalom Special Education School in Petah Tikva, which has 70 students.
  • 39% of the company's employees volunteered in dozens of community activities in 2024.