Results of the materiality analysis
Topics were rated as “very relevant,” “relevant,” “less relevant” and “not relevant” in the materiality analysis. We translated their weighting results onto a 100-point scale. Here are the results of the analysis.
The overall result
The following illustration shows how all of the topics were rated by our stakeholders, and from a corporate perspective, on a scale of 0 to 100.
Materiality Matrix
All topics for 2021
Top topics with regard to Deutsche Telekom's sustainable business development
We consider all topics that achieved more than 68 points on average in the materiality process to be top topics. The following matrix presents these topics, on a scale of 50 to 100.
Materiality matrix of Deutsche Telekom
Top topics for 2021 (excerpt)
Global Reporting Initiative (GRI)
- GRI 102-46 (General Disclosures)
- GRI 102-47 (General Disclosures)
- GRI 102-49 (General Disclosures)
Material topics matched with GRI aspects
The following overview indicates in extracts which GRI aspects can be matched with the material topics of the materiality analysis.
# | Material aspects | GRI aspects | Management approach | ||
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1 | Network expansion |
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2 | ICT | solutions that contribute to climate protection
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3 | Limiting the effects of climate change |
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4 | Data security |
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5 | Data protection |
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6 | Circular Economy (incl. electronic waste) |
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7 | Ethical business practices and compliance |
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8 | Supply chain labor standards |
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9 | Socially relevant application of ICT products and services |
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10 | Media literacy (including ICT and child safety) |
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11 | Employee diversity and anti-discrimination |
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12 | Transparency and reporting |
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13 | Service quality |
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14 | Disruptive technologies |
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Materiality as a basis for evaluation of ESG risks and opportunities
In the year under review, we used our materiality analysis as a starting point for identifying and evaluating the risks and opportunities that arise in connection with our sustainability issues. In the case of many topics that are highly important, pursuant to our materiality analysis, the pertinent risks for our company are comprehensively evaluated by the responsible person(s) within the Group – such as staff in the areas of Compliance or Data Privacy. Such supplementary analysis gives us a clearer perspective of the relevant impacts on the environment and society, and it helps us to pair our risk analysis with strategic opportunity assessment.
On the basis of the most important sustainability issues involved, we have developed various possible scenarios. In one, for example, disruptive, new products can help solve existing social, economic or ecological problems. On the other hand, adverse environmental impacts, such as larger quantities of produced waste, can increase costs (in this case, costs for waste management). Such scenarios have been evaluated by experts in terms of their probability of occurrence and their financial impacts. On the basis of such evaluation, the risks and opportunities linked to the scenarios have been grouped into the categories “low,” “medium” and “high.”
The analysis indicates that, currently, the supply chain and climate-related issues present high risks for society, for the environment and for us as a company – for example, pollutants released in the supply chain can adversely affect human health, and tighter legal requirements can lead to higher costs for us. For years now, these issues have been taken into account in Deutsche Telekom’s overarching risk-and-opportunity management process, and they are reported in detail each year in our annual report. On the other hand, our products and services can help solve ecological and social challenges. For example, we offer solutions that help reduce energy consumption. Such challenges, therefore, offer opportunities for sustainable development, as well as market opportunities for us.
Our process for identifying material CR topics
We annually identify which topics are of particular importance in defining Deutsche Telekom’s sustainability management and sustainability-reporting focus from the perspective of our stakeholders as well as from an internal corporate perspective. We have also analyzed and adjusted the material topics for this report. This process factored in changes in stakeholder expectations and current external and internal developments. In the year under review, we focused on identifying and evaluating risks and opportunities – and materiality analysis served as a basis for this focus.
Since 2015, we have carried out materiality analysis on the basis of the methods set forth by the Global e-Sustainability Initiative
(GeSI). Those methods cover 55 topics that are relevant for the ICT
industry, and place them into nine categories: digital inclusion, employee relationships, climate change, circular economy, sourcing and manufacturing, customer relationships, freedom of expression and privacy, governance and management, and local community and environment impacts. These topics have been developed to pertain to a variety of companies and are therefore recognized in the industry. In addition, our experts review whether any topics need to be added, adjusted or deleted, in keeping with the specific needs of the company.
Document analysis
Document analysis is the starting point for our materiality process. This takes into account new legal texts and draft laws, studies, position papers, and media publications that provide information about the demands and expectations made on Deutsche Telekom with regard to sustainability management. The analysis also considers whether Deutsche Telekom has any influence on the respective topic and whether the expectations have an impact on Deutsche Telekom’s business activity. The tables below set out the criteria that determine whether or not a topic is highly relevant.
High expectations for the relevant topic when ...
NGOs
... the majority of NGOs express specific expectations or demand compliance with certain targets or standards.
... multiple competitors actively communicate a more ambitious strategic objective or development concepts.
... there are concrete regulatory objectives, laws or guidelines that directly impact the company.
Highly influenced by the relevant topic when ...
... all stages of the value chain are affected by the topic.
… the topic is directly related to several SDGs.
The 2021 document analysis shows a further increase in our stakeholders' expectations, particularly with regard to
Both the climate crisis and the COVID-19 pandemic are drivers of these growing demands. In this context, issues regarding digital ethics and ethical business practices are becoming increasingly important.
Internal analysis and validation
In a workshop with experts of our company, the results of the document analysis were compared with an internal estimate.
The result is the basis for our 2021 CR reporting. We are presenting the results of the analysis in a materiality matrix in accordance with the requirements of the Global Reporting Initiative (GRI).
We have included the following topics in our materiality matrix for the 2021 reporting year:
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Global Reporting Initiative (GRI)