Suppliers.

CR KPI „Sustainable Procurement“.

The Sustainable Procurement CR KPI decreased from 55 to 38 percent compared to the previous year. This can be attributed to a significant reduction in procurement volumes from suppliers who were audited or who are registered in E-TASC.

CR KPI „Sustainable Procurement" Deutsche Telekom Group.

Data checked by PwC. Based on procurement volumes at Central Procurement. Values cannot be directly compared to the previous year.

Altogether, the number of audited suppliers remained the same compared to the previous year. The order volume with suppliers who were relevant in the previous year as well decreased in part, however, and some suppliers with lower order volumes were also documented in E-TASC compared with the previous year. However, a reduction in Deutsche Telekom's overall procurement volume by 12 percent minimized the effect in the decrease of the Sustainable Procurement CR KPI.

Reporting against standards.
The Sustainable Procurement CR KPI together with information about our strategic approach fully covers the HR 1 (Human rights), HR 2 (Suppliers and human rights) and HR 10 (Impact assessments) GRI performance indicators. By providing this information, we cover the V28-04 EFFAS indicators (Supply chain). It is also relevant for criteria 1 (Opportunities and risks), 3 (Sustainability goals), 4 (Value added chain), 6 (Rules and processes), 7 (Performance indicators) and 17 (Human rights) of the German Sustainability Code. It is also used for reporting in accordance with the Global Compact  principles 1 (Supporting and respecting human rights), 2 (No complicity in human rights abuses) and 5 (Effective abolition of child labor).

Supplier relationships.

The percentage of procurement volume generated with companies registered in the industry information tool E-TASC decreased significantly from 55 percent in the previous year to 38 percent in 2011. The percentage of procurement volume generated with audited companies also decreased from 18 percent to 5 percent.

Risk management for supplier relationships at the Deutsche Telekom Group.

The reduction can be attributed to a significant reduction in procurement volumes from suppliers who were audited or who are registered in E-TASC. In contrast, the number of registered or audited suppliers remained stable. However, procurement volume by suppliers who were also relevant in the previous year decreased. Other suppliers with lower order volumes were recorded in E-TASC compared with the previous year. Therefore the values for this and the previous year cannot be compared directly. As in previous years, workshops were carried out with top suppliers.

Reporting against standards.
The Sustainable Procurement CR KPI together with information about our strategic approach fully covers the HR 1 (Human rights), HR 2 (Suppliers and human rights) and HR 10 (Impact assessments) GRI performance indicators. By providing this information, we cover the V28-04 EFFAS indicators (Supply chain). It is also relevant for criteria 1 (Opportunities and risks), 3 (Sustainability goals), 4 (Value added chain), 6 (Rules and processes), 7 (Performance indicators) and 17 (Human rights) of the German Sustainability Code. It is also used for reporting in accordance with the Global Compact  principles 1 (Supporting and respecting human rights), 2 (No complicity in human rights abuses) and 5 (Effective abolition of child labor).

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