• Act responsibly. Enable sustainability.
  • 2015 Corporate Responsibility Report
2015 Corporate Responsibility Report

Specific standard disclosures

Economic
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Expanding our infrastructure

G4-EC7 Development and impact of infrastructure investments and services supportedContent verified by PwC

Responsible infrastructure expansion

Environmental
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Protecting the climate
Operating energy-efficient networks
Making our buildings energy-efficient
Our climate-friendly mobility efforts

G4-EN3 Energy consumption within the organizationContent verified by PwC

Total energy consumption

Energy consumption at Deutsche Telekom primarily pertains to the consumption of electricity, district heating, fossil fuels and fuel for our vehicle fleet. The amount of energy sold by Deutsche Telekom is not significant and generally not included in our energy and fuel consumption values.

G4-EN5 Energy intensityContent verified by PwC

Energy Consumption ESG KPI

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Protecting the climate
Measuring Scope 3 emissions along the value chain

G4-EN15 Direct GHG emissions (Scope 1)Content verified by PwC

CO2 Emissions ESG KPI
Total CO2 emissions (Scope 1 & 2)

G4-EN16 Indirect GHG emissions (Scope 2)Content verified by PwC

CO2 Emissions ESG KPI
Total CO2 emissions (Scope 1 & 2)

G4-EN17 Other indirect GHG emissions (Scope 3)Content verified by PwC

CO2 emissions from business trips (Scope 3)

Social

Labor practices and decent work

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Shaping employee relations as a responsible employer
Improving sustainability in the supply chain

G4-LA1 New employee hires and employee turnoverContent verified by PwC

Headcount development worldwide
Fluctuation rate
Percentage of civil servants employed at the Deutsche Telekom Group
Vivento employees

The number of employees entering retirement, an important component of natural employee turnover, is not recorded within the scope of the annual workforce structure report. We therefore cannot provide a breakdown of natural turnover according to gender and age. The time and effort involved in more detailed data collection would exceed any benefit from the results.

G4-DMA Management approach

Shaping employee relations as a responsible employer

G4-LA4 Minimum notice periods regarding operational changes

This indicator cannot be used for Deutsche Telekom as a global corporation because of the extensive effort involved in compiling all country-specific regulations, an effort that exceeds the benefit of such activities. The relevant works council committees are informed on significant operational changes and involved according to the legally applicable provisions such as the German Works Constitution Act [Betriebsverfassungsgesetz]. We also regularly engage in dialog with employee representatives at a national and European level.

G4-DMA Management approach

Promoting the health of our workforce

Deutsche Telekom supports its employees with special programs when there is an emergency involving our employees or members of their families, whether it be serious illness or other situations. Some examples are described below:

  • Individual counseling by psychosocial experts from the Employee and Executive Advisory Service of our external service provider, B.A.D.;
  • Home help for the elderly and assistance for low-income families: The Post/Postbank/Telekom welfare service provides support in case of emergencies, such as natural disasters;
  • Dance therapy for women with cancer in collaboration with Erholungswerk Post Postbank Telekom e.V.;
  • Advice and arranging of services in connection with "caring for relatives"
  • Deutsche Telekom Social Fund: provides fast financial aid to employees who are unable to find a way out of financial difficulties they are facing through no fault of their own.

G4-LA5 Percentage of total workforce represented in formal joint management–worker health and safety committees

We have created different steering levels at Deutsche Telekom in Germany to implement our occupational health and safety management activities:

  • The first level is the Central Health Working Group, comprised of employer representatives from the Group and Group companies as well as employee representatives, occupational health and safety experts and representatives of employees with disabilities.
  • The second level comprises the Health Working Groups at Deutsche Telekom subsidiaries in Germany.
  • The third level is comprised of local, on-site working groups responsible for implementing occupational health and safety management locally; there are at least 110 of these.

All of our employees in Germany are represented by these committees. The national companies are responsible for their own occupational health and safety management. Step by step, however, all Deutsche Telekom employees are being entered into one certified health, safety and environmental management system, which guarantees compliance with Group-wide standards. Around 77.5 percent of employees at an international level are already covered by this management system (as of the end of 2015).

G4-LA6 Types of injury and rates of injury at the organization

Health rate
Work accidents in Germany

G4-DMA Management approach

Investing in training and development

G4-LA9 Average hours of training per year per employee by gender, and by employee category

Training (Group in Germany)

  Total hours in 2014 Female Male
Apprentices 11,408,904* 4,563,562* 6,845,342*
Students in cooperative degree programs 2,292,654* 779,502* 1,513,152*
Total 13,701,558* 5,343,064* 8,358,494*

(* Average values are used in these calculations.)

Continuing education (Group in Germany)
Our employees spent an average of around 21.8 hours attending continuing education events in 2015. All employees generally have equal access to continuing education opportunities (regardless of gender, cross-hierarchy). It is therefore not possible to differentiate at Deutsche Telekom.

Telekom Training continuing education program
Apprentices and vocational training programs

G4-LA10 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings

Programs for lifelong learning
Training and development

Managing career endings
Deutsche Telekom uses different tools depending on the situation to make it easier for employees to manage ending their career at the Group. These include the option to take advantage of outplacement consulting or severance pay. Telekom Placement Services also offers employees of Deutsche Telekom new employment prospects. Employees receive support and individual advice on all aspects of professional change, from appropriate job vacancies and application training to tailored skills development and information on financial incentives offered by the Group.

The Post/Telekom welfare service offers seminars on "Getting ready for retirement" in which Deutsche Telekom employees are invited to participate. Participants work on ways in which they will be able to fill their retirement years with meaningful activities and enjoy their retirement for years to come.

Telekom Training continuing education program

G4-LA11 Percentage of employees receiving regular performance and career development reviews

We use various tools to assess the performance and career development of our employees. The Compass tool is used for employees covered by collective agreements and for civil servants in Germany, while the Performance & Potential Review (PPR) is for employees not covered by collective agreements in Germany and for employees at the national companies. Furthermore, in 2014 we launched Performance Dialog, a new tool for assessing the performance of top-level managers.

Performance management tools and employee category Number and percentage of employees whose performance and career development were assessed
Compass (employees covered by collective agreements in Germany) 81,830 employees (92 percent of the target group)
Performance & Potential Review (employees not covered by collective agreements in Germany) 9,100 employees (98 percent of the target group)
Performance & Potential Review (employees at national companies) 24,000 employees (89 percent of the target group, tool is used in many National companies)  
Performance Dialog (top-level managers throughout the Group) 2,500 employees (97 of the target group)

In each case, the performance management tools apply for entire employee groups and therefore cover male and female employees in equal measure.

 

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Supporting diversity

G4-LA12 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversityContent verified by PwC

Women at the Group
People with disabilities
Age structure

Deutsche Telekom is an international corporation that holds no more than a majority interest in some of its national companies. For that reason it is not possible to break down these values based on employee category.

G4-DMA Management approach

Supporting diversity

G4-LA13 Ratio of basic salary and remuneration of women to men

We have been comparing the pay of male and female employees for several years now. We were unable to identify any significant, gender-based differences in pay for our employees in Germany. Our Logib-D and eg-check certifications confirm that men and women receive equal pay for the same work. It was not possible to record the pay of our male and female employees at all of our international locations due to data unavailability, relevance to competition and the time and effort involved.

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Managing sustainability in procurement processes
Improving sustainability in the supply chain
2015 audit results

G4-LA14 Percentage of new suppliers that were screened using labor practices criteria

We do not currently have information regarding the percentage of new suppliers that have been evaluated based on sustainability criteria (e.g., through voluntary information, the EcoVadis platform or social audits). This information will be available once the supplier portal has been introduced throughout the Group. Roll-out is scheduled to be completed by the end of 2016. The general requirement for any supplier relationship is passing a pre-qualification process, which includes 16 questions regarding sustainability.

G4-LA15 Significant actual and potential negative impacts for labor practices in the supply chain and actions takenContent verified by PwC

2015 audit results

Improvement measures regarding working conditions, human rights or environmental protection were implemented at the facilities of 53 out of 62 audited suppliers.

Human Rights

G4-DMA Management approach

How we protect human rights

G4-HR3 Total number of incidents of discrimination and corrective actions taken

Reports received by the Contact Point for Human Rights

G4-DMA Management approach

How we protect human rights

G4-HR4 Operations and suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated, and measures taken to support these rights

2015 audit results

To our knowledge there are no cases of this nature.

Deutsche Telekom recognizes the fundamental right to freedom of association and the right to collective bargaining within the scope of national regulations and existing agreements. These principles form an integral part of the Social Charter img, are binding for the entire Group, and must be confirmed in writing annually by the Group companies.

With regard to the accusations from unions about T-Mobile USA, it is important to note that the freedom of association and collective bargaining is guaranteed in the United States. All employees have the right to organize themselves in unions. This is effective and is being practiced, which can be seen from the fact that employees at two locations in the north-eastern USA (Connecticut and New York) have decided in favor of union representation. There are also several collective agreements at these two locations that T-Mobile USA signed with the responsible union, the Communications Workers of America.

Additional links:
http://www.telekom.com/corporate-responsibility/responsible-employer/news/169844
http://www.telekom.com/corporate-responsibility/responsible-employer/news/202338

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Managing sustainability in procurement processes
Improving sustainability in the supply chain
2015 audit results

G4-HR10 Percentage of new suppliers that were screened using human rights criteria

We do not currently have information regarding the percentage of new suppliers that have been evaluated based on sustainability criteria (e.g., through voluntary information, the EcoVadis platform or social audits). This information will be available once the supplier portal has been introduced throughout the Group. Roll-out is scheduled to be completed by the end of 2016. The general requirement for any supplier relationship is passing a pre-qualification process, which includes 16 questions regarding sustainability.

Sustainable Procurement ESG KPI
Supplier relationships

G4-HR11 Significant actual and potential negative human rights impacts in the supply chain and actions takenContent verified by PwC

2015 audit results

Improvement measures regarding working conditions, human rights or environmental protection were implemented at the facilities of 53 out of 62 audited suppliers.

Society

G4-DMA Management approach

Management approach (Compliance)

G4-SO3 Total number and percentage of operations assessed for risks related to corruption and the significant risks identified

The following risks of corruption were identified as the most likely within the scope of our risk analysis:

  1. Favoring an employee or business partner’s employee or agent in terms of a specific future business decision resulting in unfair favoritism in competition.
     
  2.  Acceptance of a benefit aimed at securing a specific business decision.
     
  3. Employee develops selection criteria to be in favor of a supplier/consultant, leaving the buyer with no choice; employee influences an auction/bid in favor of a bidder and receives a benefit in return.
     
  4. When awarding contracts for services, an employee/buyer agrees to conditions that are to the detriment of the company in return for money or other benefits from the contractor/consultant.
     
  5. An employee makes an arrangement with a supplier to add 10 percent to a bill; the supplier pays half of the extra amount charged into a private bank account of the employee.


Each year, we carry out a Group-wide compliance risk assessment (CRA) to determine compliance risks and develop tailored compliance measures. In 2015, the CRA included 79 companies and thus covered around 96 percent (based on the number of employees).

G4-SO4 Communication and training on anti-corruption policies and procedures

Classroom training sessions were conducted on anti-corruption in 2012/2013. All members of the Group Board of Management and the first reporting level attended the training. We also conducted risk-specific classroom training sessions at the IT, Sales, Procurement, Services, Production, Technical Services, Marketing, Technology and Finance departments. More than 3,400 employees attended the training. Members of the Managing Boards and members of risk groups were trained internationally (3,800 participants). Almost 16,000 employees participated in an e-learning offer in Germany. This e-learning offer was rolled out at 26 companies internationally. Additional topic and risk-specific trainings were conducted in 2014. In the Delivery unit at T-Systems International, for example,1,221 employees in Germany and 1,120 employees internationally attended 72 classroom training sessions.

No specific training campaign on this topic was conducted in 2015 as certification is scheduled for 2016/2017 and we are planning to launch a new training campaign in this context.

E-learning img training in Germany
In 2014 and 2015, 27,756 employees in high-risk positions (sales, procurement) in Germany completed the anti-corruption e-learning course; 20,452 employees received a certificate for completing a compliance e-learning course; 39,809 employees participated in an e-quiz on gifts and more than 2,000 employees took the e-learning course on consultant services.

Face-to-face training in Germany and internationally
In 2015, 870 employees (Germany) and 1,500 employees (internationally) from the T-Systems segment participated in face-to-face training on compliance and anti-corruption together with 3,600 employees from our Europe segment. 700 employees from our Germany segment participated as well, as did around 580 employees from our Service Headquarters.

Implementation of Group policy throughout the Group
Deutsche Telekom has introduced the Group Policy on Avoiding Corruption and Other Conflicts of Interest, which sets out the relevant responsibilities and duties and includes a list of possible conflicts of interest. We also introduced our Group Policy on Accepting and Granting of Benefits, which clearly specifies which benefits may be granted to and accepted from business partners.

Both policies have been rolled out and communicated throughout the Group and approved by the managing boards at the various companies.

Providing information and training to business partners
Our business partners are required to accept the Deutsche Telekom General Terms and Conditions for Purchasing before entering into a business relationship with us. These include an anti-corruption clause. In addition, we ask our business partners questions regarding their compliance management systems as part of supplier self-assessment process. Deutsche Telekom has been offering compliance training to external business partners and suppliers since September 2014. The training offer particularly focuses on small and medium-sized German business partners and suppliers. With face-to-face training offers and an online training program, Deutsche Telekom encourages its partners to conduct their business ethically and in compliance with relevant laws and regulations. The training addresses specific compliance-relevant topics such as corruption prevention, anti-trust law and sustainability and introduces Deutsche Telekom’s compliance management system.

G4-SO5 Confirmed incidents of corruption and actions taken

Deutsche Telekom engages in extensive compliance management activities to prevent and fight corruption Any violations we uncover during our investigation are punished appropriately. In some cases employment relationships have even been terminated for good cause. The total number of punished incidents of corruption is confidential.

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Ensuring integrity and compliance

G4-SO8 Fines for non-compliance with laws and regulationsContent verified by PwC

Major ongoing litigation

Product responsibility

G4-DMA Management approach

Protecting consumers and young people
Protecting our infrastructure
Striving for secure mobile communications
Developing sustainable products and services

G4-PR2 Fines for non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services

Major ongoing litigation

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How we guarantee excellent service quality

G4-PR5 Results of surveys measuring customer satisfactionContent verified by PwC

Measurable success with "C1 – Customers first."

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Laying the foundation for effective data privacy
Protecting consumers and young people
Protecting our infrastructure

G4-PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer dataContent verified by PwC

Major ongoing litigation

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