Socially responsible investment.
As a global player, Deutsche Telekom focuses on generating sustainable added value. It is our general goal to keep our medium and long-term capital costs at a reasonable level. Sustainable investments play an especially important role in this.
Our goal is to consistently increase the proportion of shares held by ethically oriented investors. We measure our performance in this area based on the Socially Responsible Investment (SRI) CR key performance indicator (CR KPI).
In 2011, the share of Deutsche Telekom AG stock that was owned by investors who include environmental, social and governance criteria (ESG criteria) in their investment strategies was 15.1 percent worldwide. Around 13 percent was owned by investors who showed at least some concern for SRI/ESG criteria when making their investment decisions. Investors who give priority to these criteria held about 2 percent of T-shares (source: Ipreo).
Just like in preceding years, the quantity, scope and depth of detail of existing rating requests has increased. Deutsche Telekom deliberately decides to take part in ratings that are relevant to sustainability-oriented stakeholders, especially investors. In addition, the internal effort required to respond to a request must be reasonable in relation to the added value for the company.
Deutsche Telekom stock is listed in the most important sustainability indices and represented in numerous SRI funds. In our internal "Leading the way" project, ranking and rating results are an important benchmark in evaluating our progress in becoming a CR leader in the ICT industry.
As in preceding years, we were listed in many sustainability indices in the reporting period, such as the Dow Jones Sustainability Index (DJSI) and the Financial Times Stock Exchange 4Good Index (FTSE4Good ). However, our position in the Newsweek Green Ranking worsened. In 2011, we improved slightly in our Disclosure Score according to the assessment of the Carbon Disclosure Project (CDP) compared to last year. However, in part due to the decidedly changed rating methodology, our Performance Score was worse, and we are no longer listed in the Carbon Performance Leadership Index, the CDP Index of the top 500 companies worldwide with the best climate protection performance.
We managed to be included in the new STOXX Global ESG Leaders Index in the spring of 2011. This sustainability index evaluates the KPIs of 1,800 European stock corporations and rates these companies based on the factors of environment, social issues and corporate governance. The evaluation by the ratings company Sustainalytics is the foundation for this.
Our evaluation of the ratings and rankings shows that we are evidently not entirely fulfilling the analysts' wishes pertaining to Group-wide CR management and to measurable progress in energy consumption, emissions and waste. We will therefore more closely align our CR measures with the parameters used by analysts in the future. The Group-wide mandatory CR KPIs are certainly a step in the right direction.
For better integration of the international subsidiaries into the Group ratings, we are increasing transparency in internal CR communication. We regularly present the most important ratings of the year throughout the Group and inform the international subsidiaries of Telekom's ratings and of the resulting listing in sustainability indices. In addition, we are planning to give the international subsidiaries access to an internal content management system that contains current qualitative information for the rating services at the local level.
Please contact us.
Save up to five personal favorites.Save