Management & facts

Since 2016, we have reported on the ESG KPI  “Carbon Intensity.” In contrast to the ESG KPI “CO₂ emissions” used in previous years, this ESG KPI shows the CO₂e emissions in proportion to the transmitted data volumes. Using data volume as a reference parameter makes it possible to create a direct link to the performance of our networks.

Our ambition: decrease KPI

The ESG KPI figure also takes into account total CO₂ emissions for all energy sources – fuel, gas, district heating and electricity. The data volume is composed of the transmitted IP  data volumes (including Voice over IP, Internet, IP-TV).

Since 2016, we have reported on the ESG  KPI  “Carbon Intensity”. In contrast to the ESG KPI “CO₂ emissions” used in previous years, this ESG KPI shows the CO₂e emissions in proportion to the transmitted data volumes. Using data volume as a reference parameter makes it possible to create a direct link to the performance of our networks.

The ESG KPI figure also takes into account total CO₂ emissions for all energy sources – fuel, gas, district heating and electricity. The data volume is composed of the transmitted IP  data volumes (including Voice over IP , Internet, IP-TV).

We present our Scope 1 to 3 greenhouse gas emissions uniformly so that they can be compared with each other. To that end, emissions are converted into metric kilotons of CO₂ equivalents  (CO₂e). In addition to CO₂, we also consider CH₄ and N₂O, and are working on integrating HFCs (refrigerants) into the calculation as well. Biogenic CO₂ emissions were not recorded separately for the year 2022, as they only occur to a small extent. We break down the emissions that occur along our value chain; this gives us an overview of where in the value chain the majority of them occur.

By making a complete transition to electricity from renewable energies, we were able to considerably reduce our Scope 2 emissions  in the year under review. In 2022, market-based Scope 1 and 2 emissions  throughout the Group amounted to around 233 000 metric tons of CO₂e, or about 5.4 percent lower than in the previous year. 

In 2022, Scope 3 emissions  decreased in comparison with the previous year – from 14.8 million metric tons, to around 12.3 million metric tons of CO₂e. Most of these emissions resulted from the manufacture of products and components (in particular devices and network technology), and from the use of our products and services (for example, sold or rented fixed-line and mobile phones, routers, and media receivers) by our customers. We also include emissions resulting from the use of our services by our customers’ own devices, such as laptops or televisions. Emissions from the manufacture and transportation of technology required for establishing our networks are also taken into account.

The main reason for the reduction in emissions is that, in accordance with the guidelines of the Science Based Targets initiative, the 2.6 million metric tons of indirect emissions resulting from the use of our services were removed from the calculation. These emissions come from the electricity consumed by terminal devices that customers have purchased from other providers, for example, smartphone manufacturers or other retailers. On the other hand, emissions caused by visits to Telekom Shops by our customers have been included for the first time for Germany and Europe. Emissions are still around 14.8 million metric tons, a figure comparable to the previous year, but emissions intensity, which is the level of emissions produced per euro of turnover, was reduced by around 6 percent with respect to the previous year due to the increase in turnover.

Currently, we are studying various factors that will influence the quantities of our future emissions (Scopes 1–3). For example, fewer emissions from our employees commuting to and from work, and our suppliers’ climate-protection efforts, are having a positive impact. In addition, lower power mix factors, and improved energy efficiency in the devices used in connection with our products and services, can be expected to lower emissions. On the other hand, it is possible that higher numbers of (new) devices used in connection with our products and services will increase emissions. The switch to the new mobile communications standard 5G, wider network coverage, and higher-quality fixed lines are also expected to result in emissions increases.

  Data assured by Deloitte. For detailed assurance comments see „DT Group in Germany“ and „T-Mobile US“. Includes offsets from purchased certificates.

In addition to discussing the emissions of the Group as a whole, we provide separate information on Scope 1–3 emissions for T-Systems International. We present our Scope 1–3 greenhouse-gas emissions in a consistent manner, so that they can be compared with each other. To that end, emissions are converted into metric kilotons of CO₂ equivalents  (CO₂e). In addition to CO₂, we also consider CH₄ and N₂O, and are working on integrating HFCs (refrigerants) into the calculation as well. Biogenic CO₂ emissions were not recorded separately for the year 2022, as they only occur to a small extent. We also break down emissions along our value chain. This gives us an overview of where most of the emissions are produced in the chain.

In 2022, market-based Scope 1 and 2 emissions  for T-Systems amounted to around 11 000 metric tons of CO₂e. In the same year, the Scope 3 emissions  were 285 000 metric tons of CO₂e, thereby accounting for the largest emissions share. Most of these emissions occurred in the upstream value chain, as well as in our customers’ use of T-Systems products and services. In those emissions, we also include emissions resulting from the use of our services by our customers’ own devices, such as laptops or tablet computers.

Our CO₂ emissions are largely driven by our electricity consumption. That’s why the table below contains very detailed information about the Group numbers for the Scope 2 emissions  resulting from our electricity consumption. We differentiate between the market-based and location-based methods, thereby adhering to the GHG Protocol  Scope 2 Guidance. Market- and location-based emissions are reported in CO₂ equivalents  (CO₂e). This change was made in order to allow a transparent comparison between Scope 1 to 3 emissions and to be consistent with the requirements of the Science-Based Targets Initiative, to which the new target is also geared.

The leading reporting method is the market-based approach. This method is used to calculate emissions with a specific emissions factor (provider factor) per DT company. This factor depends on a company’s actual energy procurement (electricity mix); procuring renewable energy (direct purchase, certificates) reduces emissions.^a)

In contrast to the market-based method, with the location-based method the emissions factors for the respective country are used (the country mix factor of the International Energy Agency (IEA)). A company’s actual energy procurement (electricity mix) is hence not taken into account, i.e., not even the procurement of renewable energy over and above the country mix.

Change compared to 2020: The Scope 2 emissions calculated according to the market-based method are about 99 percent lower. The significant change compared to 2020 results from the Group-wide use of green electricity, PPAs and certificates. Since 2021, we have covered 100 percent of our electricity consumption throughout the Group from renewable sources, thus achieving one of our climate targets.

The majority of our total emissions can be classified as Scope 3 emissions . Scope 3 emissions are all emissions from upstream or downstream value chains that are produced in supply chains, through business travel, through employee commuting (upstream) or through customers’ use of products and services (downstream). They are determined in accordance with the globally accepted Greenhouse Gas (GHG) Protocol.

In order to reduce our Scope 3 emissions, we are placing increasing priority on climate-protection criteria in our supply chains. This commitment is reflected in our CDP  Supplier Engagement Rating, which once again has given us a top grade of “A.” Our CDP Supply Chain Program ESG KPI indicates the degree to which our procurement volume from carbon-intensive suppliers is covered by the CDP Supply Chain Program. We are also leveraging the benefits of blockchain technology and the NFT  approach as part of a research project that aims to create a decentralized application for making visible the impact of product manufacture and transport by suppliers on Scope 3 emissions. A blockchain infrastructure is being established for collecting data on carbon emissions along the entire supplier value chain. A unique NFT is being created for the data collected and will be handed over to suppliers in the form of a certificate of participation listing all relevant values.

The graphic presents our Scope 3 emissions from 2020–2022, broken down by emission source. In 2022, upstream emissions accounted for about 79 percent of our Scope 3 emissions, while downstream emissions accounted for about 21 percent. The basic data used to calculate Scope 3 emissions are reported in the performance-indicator tool. You will find more information on recording Scope 3 emissions along the value chain here.

The majority of our total emissions can be classified as Scope 3 emissions . Scope 3 emissions are all emissions from the upstream and downstream value chain that are generated in the supply chain through business travel, commuter traffic (“upstream”) or at the customer’s premises by the use of products and services (“downstream”). They are determined in accordance with the globally accepted Greenhouse Gas (GHG) Protocol.

The graphic shows our Scope 3 emissions from 2020–2022, broken down by emission source. In 2022, upstream emissions accounted for about 70 percent of our Scope 3 emissions, while downstream emissions accounted for approximately 30 percent. The basic data used to calculate Scope 3 emissions are reported in the benchmarking tool. You will find more information on recording Scope 3 emissions along the value chain here.

* DT Group in Germany plus European fixed /mobile network operators

Our efforts to prevent greenhouse gases include relying on renewable energies, and reducing our energy consumption through more energy-efficient technologies. So far, however, this has not allowed us to prevent all carbon emissions, which is why we offset those emissions by investing in certified climate protection projects.

Our Event Policy specifies the ways in which we offset emissions generated by events. In 2022, we offset almost 58 000 metric tons of carbon through various measures like renewable energy projects. Around 37 000 metric tons of CO₂ were compensated for through renewable energy projects. We offset a further 12 000 metric tons of CO₂ through carbon removal projects. The projects are designed to remove carbon from the atmosphere and store it on a permanent basis.

We are aiming to reach climate neutrality by the end of 2025. We plan to achieve this goal by investing in measures for long-term capture of carbon emissions, and we are currently developing a strategy to this end.