Assessment of Deutsche Telekom’s sustainability portfolio

Deutsche Telekom’s integrated climate strategy comprises four pillars, or main areas. One of the pillars consists of actions aimed at increasing the share of sustainable products and services in our product portfolio. A product can be classified as part of the company’s “sustainable product portfolio” if it most likely, or definitely, does not involve risks, and if it offers at least one sustainability advantage.

The assessment of our sustainable-product portfolio, including the relevant verifying documentation, was completed in Q1 2023. The results showed that 42 percent of our total revenue (2022 fiscal year, excluding USA) was generated with sustainability-related products and services. In the year under review, our analysis also included review of selected products in light of EU taxonomy criteria.

The T-Systems product portfolio is constantly updated, as was also the case in 2022. Compared to 2020 there were several adjustments to the portfolio that were taken into account in examining the share of sustained revenue. As a result of these portfolio adjustments, the number of reviewed product/service categories increased from 33 to 35 overall.

Adjustments were also made to the assessment methods. Now, intensified use of renewable energies (benefit 2) no longer counts as a benefit that would lead to the relevant portfolio element’s being assessed as “sustainable.” This change reflects the fact that the entire Group is now using renewable energies. As in previous years, potential cost savings (benefit 7) function only as additional information; they do not automatically lead to assessment as “sustainable.”

Overview:

Criteria for scope of assessment	In scope	Outside scope
Financial basis for calculation	2022 fiscal year, excluding USA
Region	Europe	United States
Services	Market-oriented core products for B2C and B2B (including B2G) Broadband for fixed network, mobile, and wholesale TV Value-added services Market-oriented, non-core products for B2C and B2B, e.g., hosting services Corporate solutions for B2B (including B2G)	Internal services such as consulting, facility management, and transactions with national companies Financial assets
Physical products	ICT infrastructures such as data centers	Physical facilities required for corporate functions, e.g., buildings

Defining the relevant landscape
Risk and benefit filter
Methods and content	Methodological analysis and assessment of the ecological and social advantages of DT products and services based on defined risks (7) and benefits (7) Inclusion of products that most likely, or definitely, do not involve risks, and that offer at least one sustainability-related advantage, apart from any cost-saving effect Calculation of the “Sustainable Revenue Share ” KPI (share of revenue from sustainable DT products and services, with respect to overall revenue)
2022 assessment findings (base: 2022 fiscal year, excluding USA)	42 percent of total revenue was generated with sustainable products and services