Energy

ESG KPI “Energy Consumption" a)

Deutsche Telekom measures the Energy Consumption ESG  KPI  as the Monetary Power Efficiency Index (MPEI ) in which developments in energy consumption (in thousands of MWh) are indicated in relation to revenues (in billions of euros). Development of the Energy Consumption ESG  KPI  exceeded the predictions made in our 2013 Annual Report. Instead of remaining stable, the Energy Consumption ESG  KPI  improved slightly. This is due to the fact that revenue grew more strongly and energy consumption less strongly than anticipated. For detailed comments on the figures for each national company, please refer to the interactive benchmarking tool.

The Group-wide Energy Consumption ESG  KPI  is calculated based on total electricity consumption at the national companies in relation to the consolidated net revenue of these national companies. The revenue of the Group units included in the CR Report used for reference here is the equivalent of 99 percent of Group revenue.

Over the next two years we expect our Energy Consumption ESG KPI  to fall or fall slightly, i.e., a positive development. Network migration to IP  technology and consolidation of the T-Systems data centers will be the main factors helping us to achieve major energy savings. These savings will be partly counterbalanced by the expansion of T-Mobile US and the accompanying rise in energy consumption.

By reporting our electricity consumption in relation to our revenues for the reporting period, we fully cover the G4-EN5 (Energy intensity) and the E01-02 (Energy consumption, specific) EFFAS indicator and we partially cover the E01-01 (Energy consumption, total) EFFAS indicator. This data is also relevant for criteria 7 (Rules and processes), 11 and 12 (Usage of natural resources) of the German Sustainability Code. It is also used for reporting on the Global Compact  principles 7 (Precautionary approach) and 8 (Promoting environmental responsibility).

Total energy consumption increased slightly by approx. 4 percent year over year. This can primarily be attributed to the inclusion of additional national companies in the reporting process. Without these companies, energy consumption would have remained constant at previous year levels. While energy consumption increased at T-Mobile US, Makedonski Telekom, T-HT Hrvatski Telekom and T-Systems UK recorded a significant drop in their consumption. For detailed comments on the figures for each national company, please refer to the interactive benchmarking tool.

Data verified by PwC. For detailed audit comments see "DT Group in Germany" and "T-Mobile USA".

You will find more information on our climate protection measures here.

By reporting our energy consumption from primary energy sources, we partially cover the G4-EN3 (Energy consumption within the organization) GRI indicator and the E01-01 (Energy consumption, total) EFFAS indicator. By reporting fleet energy consumption, we also partially cover the EN 29 (Environmental impact of transportation) GRI indicator. This data is also relevant for criterion 11 of the German Sustainability Code (Usage of natural resources). It is also used for reporting on the Global Compact  principles 7 (Precautionary approach) and 8 (Promoting environmental responsibility).

Deutsche Telekom was able to reduce the emissions generated by its electricity consumption to zero from 2008 to 2012 by purchasing RECS  certificates (Renewable Energy Certificate System). However, we feel that these certificates have not had as positive an impact on the environment as we had hoped. Demand for certificates was generally limited. As a result, RECS  certificates do not make a noticeable contribution to encouraging the expansion of renewable energy sources. That is why we feel it makes more sense both in terms of ecological and economic aspects to invest in reducing our energy consumption and increasing our energy efficiency than to purchase RECS  certificates.

By providing this information, we fully cover the E16-05 (Alternative energy consumption) EFFAS indicator. This data is also relevant for criteria 3 (Strategic analysis, strategy and goals), 11 and 12 (Usage of natural resources) of the German Sustainability Code. It is also used for reporting on the Global Compact  principles 7 (Precautionary approach) and 8 (Promoting environmental responsibility).